China’s foreign exchange regulator under the People's Bank of China said late Friday that the country has reintroduced the counter-cyclical factor in setting yuan’s daily fixing.
The counter-cyclical factor was first introduced last year aimed at minimising the impact of market swings and was removed at the start of this year by the central bank after the currency stabilised after earlier sharp depreciation.
Chinese yuan is bouncing on the news. Offshore yuan is extending gains to more than 500 pips, breaking throufh 6.84/USD mark. Onshore yuan is also approaching the 6.84/mark . . .
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