The offshore yuan held steady around 7.33 per dollar after China ramped up support for the currency, issuing a warning and adjusting capital controls following its drop near a record low. The People’s Bank of China (PBOC) and other regulators plan to strengthen foreign-exchange market management, address disruptive behavior, and prevent yuan overshoot risks. The central bank also raised the macro-prudential parameter for cross-border funding to 1.75, allowing more overseas borrowing. These moves aim to support the yuan amid a weaker economy, a stronger dollar, and US tariff concerns. The PBOC also has been fixing the reference rate above 7.2 and plans a record bill issuance in Hong Kong to boost yuan demand. Meanwhile, latest data showed China's trade surplus surged to USD 104.84 billion in December, marking the largest surplus since February 2024, as exports jumped 10.7% year-on-year, all exceeding forecasts.
You are viewing a single comment's thread from: