The yuan falls on the announcement
The change will go into effect starting from 15 June.
The yuan has had a bit of a volatile trading day so far with earlier remarks by an ex-PBOC official suggesting that local authorities may intervene - prompting a drop in the currency - before the PBOC itself fixed the yuan at its strongest since May 2017.
And then this.
In the bigger picture, I don't see this reversing the trend in the stronger yuan as long as officials are going to maintain the narrative that a stronger currency reflects more solid economic fundamentals.
But such a move as that above will at least pump the brakes to prevent things from going too far, too fast - which has never been to China's liking.
