Bank of China takes measures to stabilize the yuan

the people’s Bank of China on Thursday established average exchange rate of the yuan at a higher than expected level. The controller may signal that the efforts to support the national currency after the recent weakness, according to Bloomberg.

the So-called gold fixing was set at the level 7,0692 yuan per dollar, which is 105 basis points above the median forecast of analysts surveyed by Bloomberg. This spread is the highest since 3 February, the first day of trading in China after the Christmas holidays, extended in the outbreak of coronavirus.

China allows fluctuation of yuan within 2% from the daily fixing.

Pressure on the yuan briefly weakened after the decision of the Central Bank. As of 10:53 in Shanghai, the yuan was traded at the level 7,1082 for a dollar, varying slightly after earlier strengthening to 0.28%.

on Wednesday, the yuan weakened by 0.67%, which is the worst indicator among the currencies of developing countries tracked by Bloomberg. Most other currencies strengthened after unprecedented stimulus measures in the United States.