China Moves to Cool Yuan Rally With Fixing, Verbal Warnings
- Ex-PBOC official, state-backed paper flag risk from gains
- Beijing set fixing at weaker-than-expected level Monday
An employee counts 100-yuan notes at a bank in Nantong, Jiangsu province, China.
Photographer: -/AFP/Getty Images
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China signaled its tolerance for the yuan’s rally is fading after the authorities set the daily fixing at a weaker-than-expected level and state-run newspapers warned against rapid gains.
Beijing fixed the reference rate at 6.3682 per dollar on Monday, versus the average estimate of 6.3656 in a Bloomberg survey. The rise in the yuan is due to short-term speculation and probably won’t last, Sheng Songcheng, a former People’s Bank of China official told the state-run Xinhua News Agency on Sunday. The central bank-backed Financial News and an ex-regulator also weighed in.