On Friday last week Yi Gang was on thew wires with No yuan exchange rate number is more important than others
The interview is getting more headlines this Monday morning in Asia. Not sure why.
He was pretty candid:
- "There is obviously a link between the trade war and the movements of renminbi,"
- "Recently, it's a little bit weaker, because of the tremendous pressure from the U.S. side."
Said also yuan moves are "basically determined by supply and demand of the market force, so that it's basically a market mechanism."
I mentioned earlier (today and in the pat) that 7 is seen by many as a bit of a line in the sand for USD/CNY. PBOC Gov's comments maybe indicating that is not so … but I reckon you can lean against 7 (if we even get close, the most recent mid rate for the onshore yuan was below 6.9) for some time even so.
