SAFE says two-way movement of the yuan to play a key role of automatic stabiliser in market.
If you have any background in exchange rate theory you'll recognise this assertion. Of course China operates under a managed exchange rate, as I post each day:
USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
- CNH is the offshore yuan. USD/CNH has no restrictions on its trading range.
