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China is escalating its defense of the yuan, pushing up funding costs in the offshore market to squeeze short positions and setting a new record with its stronger-than-expected reference rate for the currency.https://t.co/U7eU7fHEcX
— Caixin Global (@caixin) August 22, 2023
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Chinese yuan hitting ten year lows against the US dollar pic.twitter.com/sbXOwwCDVT
— Lateralist (@xyron76) August 18, 2023
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Desperate Measures to Save Face👉China's major state banks sell dollars for yuan in London, NY hours -Such desperate dollar selling could limit falls in the offshore yuan and prevent it from diverging too far from its onshore counterpart https://t.co/ktPTluksXZ
— Jay T (@Jay83214566) August 17, 2023
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— simonthong aka kitty poo (@KittyPo80176717) August 17, 2023
— simonthong aka kitty poo (@KittyPo80176717) August 17, 2023
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THE USD INTERVENTION DOOM LOOP
— AndreasStenoLarsen (@AndreasSteno) August 15, 2023
Here is why intervention will not work for the PBoC
More -> https://t.co/tR767i2PWT pic.twitter.com/CyOjD8nBPb
Selling bonds —> increases bond
— Mountain Lawyer (@Wildlaw406) August 15, 2023
supply relative to demand —> reduces bond prices, which = higher yield
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China’s central bank wants to boost the economy while keeping its currency stable. That's a tough juggling act. Interest rate cuts this week may help the economy, but they also sent the offshore yuan to around 7.34 per USD—near a multiyear low.@soonweilun https://t.co/DMmDHqoqKW
— Jonathan Cheng (@JChengWSJ) August 17, 2023
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weehingthong 