FXStreet (Guatemala) – Analysts at Bank of Tokyo Mitsubishi explained that if PBOC had been trying to push USD/RMB down, as it is doing now and has been since 11 August, but back in 2013, it would hardly have needed to do anything.
Key Quotes:
“But now the effort is laborious, because this central bank is swimming against capital flows.”
“The PR spin is September reserves showed outflows have slowed. But they are still faster than what had previously been the case through 2Q15.”
“Even as PBOC pushes down this cross, it is improving levels for a corporate hedging flow that has yet to take place. Next week’s trade figures will unlikely satisfy CNY/CNY bulls.”
(Market News Provided by FXstreet)