Reported by Bloomberg, the People’s Bank of China Governor, Yi Gang, has said last week that no specific level for the yuan is important, and indicated confidence it will continue to be “relatively strong” once the noise of the trade war subsides:
Key notes:
“There is obviously a link between the trade war and the movements of renminbi,” Yi said in an exclusive interview in Beijing, using the official term for China’s currency. “Recently, it’s a little bit weaker, because of the tremendous pressure from the U.S. side.”
have a temporary depreciation pressures on the yuan, but you see after the noise, renminbi will continue be stable and relatively strong compared to emerging market currencies, and even compared to convertible currencies, renminbi is a very strong currency.”
“I’m very confident renminbi will continue to be stable at a more or less equilibrium level,” the governor said. He later repeated those comments at the Group of Twenty meeting in Japan over the weekend.
The offshore yuan dropped in the wake of Yi’s remarks and closed at 6.9442 in offshore trading on Friday, when China’s markets were shut for a holiday.
(Note: Today Australia so markets are likely to be less liquid around the yuan and AUD in Asia).
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