Bid to keep yuan stable to get costlier

Hong Kong

CHINA may still be far from Jim Chanos's infamous "treadmill to hell", but its policy makers this year will find themselves running harder to stand still.

That's the take of analysts seeing a rising cost to the People's Bank of China for its insistence on a stable exchange rate as investors rush to exit out of the yuan. The price was clear on Tuesday, when it took continuous sales of the dollar by the central bank to stem the yuan's drop in the wake of a Monday sell-off. Officials followed that by allowing a resumption of the yuan's decline on Wednesday.