PBoC: We Can Do This All Year; Bears: Let's

ZH: Yuan Soars Most On Record In Offshore Market As PBoC Intervenes
“There is talk of intervention driving the offshore yuan,” said Khoon Goh, a Singapore-based strategist at Australia & New Zealand Banking Group Ltd. "It would seem that they are trying to dampen depreciation expectations and drive a narrowing of the onshore-offshore spread,” he said, noting that it is unusual for the People’s Bank of China to intervene outside of the domestic market.

Bloomberg: China Opens Onshore Currency Market to Foreign Central Banks

Reuters: China's yuan jumps offshore in suspected intervention
"In the very extreme moment of the buying, we saw a rare reverse market quote in the Chinese currency, which is an indicator that the buyers wanted to push up the value of the yuan at any cost," said the head of local currency trading at a U.S. bank in Hong Kong.

A "reverse market quote" refers to when the bid price is higher than the offer price, which traders said pointed to intervention.

"There are some Chinese banks steadily buying large amounts of yuan," said a trader at an Asia commercial bank in Hong Kong.

"But even if it is intervention by the central bank, I don't think it will change the expectation on the depreciation of yuan."
The bears thank the PBoC for the lift.

No comments:

Post a Comment