After the yuan slid further in early in Wednesday trade currency dealers said Chinese state-owned banks were seen selling dollars on behalf of the PBOC to restrain the yuan's fall, and the spot market rate recovered late in the day to close 6.3870, a rate which will influence Thursday's setting.
"Apparently, the central bank does not want the yuan to run out of control," said a trader at a European bank in Shanghai.
However, sources involved in the Chinese policy-making process said powerful voices within government were pushing for the yuan to go still lower, suggesting pressure for an overall devaluation of almost 10 percent.
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China lets yuan fall further, fuels fears of 'currency war'
So, I guess over time we will see which forces win within China. We will see if this is literally a "Currency War" of epic proportions or whether this is a desperate way China is using to shore up their economy and currency or (Both). Because this thing could easily backfire on literally everyone on earth including China at this point the way it presently is going.
China lets yuan fall further, fuels fears of 'currency war'
So, I guess over time we will see which forces win within China. We will see if this is literally a "Currency War" of epic proportions or whether this is a desperate way China is using to shore up their economy and currency or (Both). Because this thing could easily backfire on literally everyone on earth including China at this point the way it presently is going.
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