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The  People’s Bank of China  (PBOC) clarified Thursday that the exchange rate adjustments cannot be used as a tool to boost exports or counter the impact of the rising inflation, driven by higher commodity prices.

Key quotes (via Bloomberg)

“The foreign exchange market is currently “balanced” and the yuan rate could go either way in the future.”

“The key is to properly manage expectations, firmly crackdown on attempts to manipulate the market or ‘maliciously’ create one-sided expectations.”

“Enterprises and financial institutions should adapt to a two-way fluctuation of the exchange rate.”