Despite a 4-5 percent depreciation in 2015, the yuan has still appreciated against a basket of currencies,

Says Guan Tao, the head of the department of international payments at the State Administration of Foreign Exchange (SAFE)

  • In an interview with the Economic Daily
  • Says investors should not to be alarmed by foreign institutions "talking down" the yuan
  • Says some capital outflows from China were normal and should not be regarded as capital flight

Via Reuters, which adds;

  • Chinese regulators have argued that the yuan has remained stronger than it should given significant depreciation of neighboring currencies against the dollar

I suppose that final bit could be a reason for further USD/CNY strength


While I'm at it .... China stocks still trading down on the day but stable