Swiss Economicblogs.org
A new daily fixing mechanism gives the Chinese central bank more control over the exchange rate and reduces pressure on the renminbi in the case of renewed dollar strength.The People’s Bank of China (PBoC) recently announced the introduction of a “counter cyclical adjustment factor” (CCAF) to calculate the daily USD/CNY reference rate (the “fixing rate”). The previous formula used two factors: the USD/CNY spot close of the previous day and an adjustment factor taking into account overnight...
Read More »New fixing mechanism limits renminbi depreciation against the U.S. dollar
