That estimate in the headline is via ANZ analysis:
- China FX reserves fell $7.8b in June to $3214b.
- After adjusting for valuation and income effects ... I estimate that the PBOC intervened by $23bn to buy USD and sell yuan
- most of which likely occurred when yuan was trading beyond 6.40 during the first half of June
ANZ note that ... "This is the most in a while"
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By buying USD/yuan the PBoC is aiming at weakening the yuan. Look like under 6.4 was the line in the sand; a level to perhaps to keep an eye on ahead should yuan strengthen again. Don't go betting the farm on relying on the People's Bank of China though folks.
