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China's central bank pegged the yuan high

by endroar
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The yuan recently fell to its lowest level in four months. For that reason, the PBOC has pegged the yuan rate slightly higher to ensure that the currency does not fall further.

The yuan has depreciated about 2 percent against the dollar in the past three months. News that China's central bank will ease monetary policy controls has added pressure on the yuan. China's central bank is going to release the monetary policy rush to put wind in the sails of the economy. That is, the policy is going to reduce the interest rate. Also, the central bank of China is facing this situation due to the weakening of the Japanese currency, the yuan.

Another issue is the US central bank's decision to keep policy interest rates unchanged. Analysts believe that other Asian currencies will continue to depreciate against the dollar until the Fed cuts interest rates. Many compare the day of the Fed's rate cut to D-Day (June 6, 1944), the role played by D-Day during World War II. comparable to


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