China digs into bag of yuan tricks

SHANGHAI:

Chinese authorities have rolled out an array of tried-and-true manoeuvres in recent weeks to slow the yuan’s slide, showing relative success compared with other battered currencies, but analysts say they face long odds against an unstoppable dollar. The stepped-up efforts, taken as the yuan tumbled about 7% from mid-August to a 14-year-low around 7.25 per dollar on September 28, range from unusually strong signals to the market - last week the central bank told state-owned banks to prepare to sell dollars - to administrative measures that raise the cost of shorting the yuan.

Published in The Express Tribune, October 4^th, 2022.

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