China Cuts Dollar Weight In FX Basket In Desperate Attempt To “Project Image Of Yuan Stability” | Zero Hedge

With the topic of Yuan’s relentless plunge to all time lows clearly bothering China and threatening to breach the symbolic level of 7 Yuan for the dollar, overnight Beijing decided to do something about it. Only instead of actually implementing much needed, and long overdue economic reforms, banking sector deleveraging or financial liberalization, China once again took the easy way out, when it revised its recently introduced trade-weighted FX currency basket by diluting the role of the dollar and adding another 11 currencies as, in Bloomberg’s words, “officials seek to project an image of stability in the yuan.”

Source: China Cuts Dollar Weight In FX Basket In Desperate Attempt To “Project Image Of Yuan Stability” | Zero Hedge

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