PBoC behind RMB depreciation

The sharp fall in the RMB at the end of February was a deliberate action by China’s central bank to engineer the development of a two-way market in the currency

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

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