A report from China News Service (comes via MNI):
Comments from Deputy Director of the Office of Central Financial Work Leading Group Han Jun in a forum:
- Expectations that the yuan will depreciate sharply should be seen as ridiculous and humorous
- The yuan's recent fall against the US dollar is temporary
- Its inclusion in the IMF's SDR will support the currency
- There is no basis for the yuan to depreciate based on China's economic fundamentals and trend
- China will maintain the yuan's stability in a reasonable and balanced state
- China is also against currency wars and will not seek to stimulate exports via the yuan's depreciation
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Hmmm . There you go.
The efforts to slow, or perhaps even halt, the devaluation of the yuan seem to be picking up pace.
It all started way back last week: Offshore CNH has recovered its losses (I suspect intervention to smooth the flows, but unconfirmed at this stage)
And has picked up pace since:
- Yuan (CNH) based overnight Hong Kong rate to its highest since launch in June 2013
- Yuan unwinds most of this year's decline
