PBoC behind RMB depreciation

China central bank acts to stimulate two-way trading

Chinese currency

A sudden depreciation in the valuation of the renminbi in offshore and onshore markets since the middle of February is a temporary move engineered by the People's Bank of China (PBoC) in order to encourage more two-way movement in the currency that will impact short-term investors rather than longer-term investors and corporate hedging activity, say market participants. According to Bloomberg data, the RMB has strengthened against the USD in all but three quarters since a dollar peg ended in