The PBOC comments on the yuan

  • Two-way fluctuation in the yuan exchange rate is normal
  • Exchange rate can't be used to offset commodity price rise
  • Exchange rate can't be used to spur exports either
  • Exchange rate impacted by many market, policy factors

This is an important piece of communication by the PBOC, not in the sense of what they are saying but more so the timing of why this is being communicated.

As mentioned, both the onshore and offshore yuan are trading below 6.40 currently and this does not seem like very much pushback by Chinese officials. It is pretty much a green light for the yuan to keep with the trend all things considered.