The yuan has recently depreciated against the dollar, hitting its lowest level since the 2008 global financial crisis.

(Bloomberg)

[Central News Agency] The recent heavy depreciation of the yuan against the US dollar hit the lowest level since the global financial crisis in 2008. China's official attitude has gradually emerged from the old gods.

Foreign media pointed out that China's foreign exchange regulatory authorities have recently urgently investigated the foreign exchange situation of some banks and asked for opinions.

Today, the central parity rate of the RMB against the US dollar was sharply lowered to 7.1668 yuan from 7.1230 yuan yesterday, the weakest since February 2008.

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The State Administration of Foreign Exchange (SAFE) sent a survey to some banks on the evening of the 24th, asking them about their situation and strategies in the foreign exchange market, as well as their views on the recent trend of the yuan, Reuters reported, citing three people familiar with the matter.

They said the official view was that "the renminbi was overreacting," indicating that some market participants were clearly "betting against the renminbi in bad faith," and that "regulators have made it clear that this investigation is urgent."

The report quoted Ken Cheung, chief Asian foreign exchange strategist at Mizuho Bank, as saying that regulators could use the survey to consolidate the reasons and views on the sharp fall in the yuan, which would be helpful for the right remedy.

The report pointed out that under the global trend of raising interest rates to counter inflationary pressures, China is one of the few countries that still maintains an easy monetary policy.

Beijing has rolled out a series of measures to curb the yuan's rapid depreciation, including boosting cross-border corporate financing and making it easier for Chinese domestic companies to raise capital from overseas markets.

Xing Zhaopeng, senior strategist at ANZ, pointed out in the report that the next step may be to tighten overseas loans, and the market will also pay attention to whether the People's Bank of China (the People's Bank of China) will further intervene in the foreign exchange market, "Foreign exchange reserves are one of the indicators of comprehensive national strength. , China is likely to protect the foreign exchange reserve this time.”

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