Yuan Drops as PBOC Cuts Reference Rate by Most Since July 2012

China’s yuan fell after the central bank cut the currency’s fixing by the most since July 2012 and the nation’s exports unexpectedly declined last month.

The People’s Bank of China lowered the daily reference rate by 0.18 percent to 6.1312 per dollar today, the weakest level since Dec. 3. Overseas shipments fell 18.1 percent in February from a year earlier, the biggest drop since 2009, customs data showed March 8. That compares with the median forecast for a 7.5 percent increase in a Bloomberg News survey. The figures may have been distorted by the Lunar New Year holiday and over-invoicing a year earlier, Tim Condon, Singapore-based head of Asia research at ING Groep NV, wrote in a note today.


Related Posts

  • 81
    The move in March by the People’s Bank of China (PBOC) to double the RMB’s daily trading band from 1 percent to 2 percent has coincided with a new era of exchange rate volatility. This year, the long running trend of RMB appreciation has reversed course with it losing 3.4 percent against…
    Tags: percent, currency, year, bank, china
  • 69
    Efforts by China to damp speculation in its currency risks driving away investors just as it’s attempting to open up its capital markets in a once-in-a-generation economic overhaul. After allowing the yuan to steadily rise in each of the past four years, China’s central bank let it tumble about 1…
    Tags: china, yuan, currency, bank, percent, central, http://www.bloomberg.com, month, bloomberg
  • 66
    China’s central bank weakened the renminbi by its most in two decades on Tuesday. The unexpected move fuelled talk of “currency wars”, although some interpreted it as a welcome gesture towards market reform and financial liberalisation. What happened? The People’s Bank of China devalued its currency by setting the daily…
    Tags: currency, china
  • 61
    The yuan has recently been something of a safe haven among emerging-market currencies, yet market participants have learned from a bloody lesson over the past week that it is no longer an easy, one-way bet. A sharp fall of both the onshore and offshore yuan against the greenback made the…
    Tags: yuan, asia, currency, drop, china
  • 60
    (Source : http://qz.com/486476/everything-youve-heard-about-chinas-stock-market-crash-is-wrong/ ) This week’s Chinese stock market implosion has been widely viewed as a reaction to the Chinese government’s devaluing the yuan on Aug. 11—a move many presume was a frenzied bid to lower export prices and strengthen the economy. This interpretation doesn’t stand up to scrutiny. First, Chinese…
    Tags: yuan, china, currency, bank, pboc