China considers changing yuan-fixing formula to curb volatility
This is seen as a step back from Xi Jinping's 2013 pledge to give markets a central role
Beijing
CHINA is considering changes to the way it calculates the yuan's daily reference rate against the dollar, a move that is likely to reduce exchange rate volatility while undermining efforts to increase the role of market forces in Asia's largest economy.
Policymakers may add a "counter-cyclical factor" to the yuan's daily fixing, according to a government statement on Friday, which confirmed an earlier report by Bloomberg News. Analysts said the change would give authorities more control over the fixing and restrain the influence of market pricing.
While a more tightly managed currency could give China breathing room to push forward with a deleveraging campaign that is popular among Western investors, it would mark a step back from President Xi Jinping's 2013 pledge to give markets a central role. The central bank's existing fixi…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
TikTok suspends new app’s reward programme amid EU concerns
Hong Kong spot crypto ETFs to start trading next week
Cordlife substantial shareholder Nanjing Xinjiekou still mulling over offer to buy over remaining shares
Nvidia agrees to acquire Israeli AI software provider Run:ai
HSBC says growing Chinese wealth fuels client investments in US
Unilever's India quarterly profit disappoints