Comments by China FX regulator chief, Pan Gongsheng
- Does not expect disorderly depreciation of the currency
- Despite impact from external factors such as trade tensions
- Changes in the exchange rate will not lead to large-scale deleveraging in foreign debt
- China has confidence and capability to effectively fend off shocks and risks
In case you missed it earlier, China weakened the yuan again at the fixing today but it wasn't as weak as markets estimated. This continues to show that China is basically continuing with a controlled weakening of its currency since last week.
As mentioned then, markets will have to get used to this as being the new norm amid the ongoing trade war with the US.
