The PBOC’s managed float allows the yuan to fluctuate 2% on either side of daily fix, and the bank manages that band via active buying and selling of yuan. If USD/CNY threatens to rally beyond the 2% limit, for instance, the PBOC sells the dollar and buys yuan to shore up the latter’s value. At the same time, the bank buys the dollar against other currencies to keep the proportion of the greenback in reserves stable, ensuring the intervention gets recycled back into other foreign units.
Related posts
-
Blackrock CEO Larry Fink ‘Very Bullish’ on Bitcoin — Hails IBIT ‘the Fastest Growing ETF’ Ever
The CEO of Blackrock, the world’s largest asset manager, Larry Fink, says he is “very bullish... -
Bitcoin Bull Flag Could Predict 10% Surge To $77,000, Analyst Explains
An analyst has explained that a breakout from a bull flag pattern could lead Bitcoin to... -
Exploring the Cryptocurrency Landscape Beyond Bitcoin
Bitcoin, celebrating its 15th anniversary, marks a significant milestone in cryptocurrency’s evolution. While Bitcoin pioneered this...