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Aug 11, 2018

China pledges not to do what it's doing in FX market I GATA I THE GATA DISPATCH


Submitted by cpowell on 02:07PM ET Saturday, August 11, 2018. Section: Daily Dispatches PBOC Vows No 'Strong' Stimulus, Says Won't Use Yuan in Trade War
From Bloomberg News
Friday, August 10, 2018
China's central bank said it won't use the yuan as a tool to cope with trade tensions and other external issues, and that it won't conduct any "strong" economic stimulus.
The People's Bank of China won't implement stimulus in "flood-irrigation" style, according to the quarterly monetary policy report released Friday night in Beijing. Prudent monetary policy should maintain neutrality and "keep balance between tightening and easing," indicating a slightly easier bias than it did three months ago. ...

While the PBOC sees risks from rising trade tensions, financial volatility in emerging markets, and global financial fragility, it said it would not competitively devalue the yuan, nor use it as a tool to cope with external shifts such as trade tensions.

Those currency comments show that the bank will take a hands-off approach to the foreign exchange market on normal days, but intervene in the event of any massive fluctuations, chief macroeconomy analyst Zhu Qibing at BOC International China Ltd. in Beijing said. ...
... For the remainder of the report:
https://www.bloomberg.com/news/articles/2018-08-10/pboc-vows-no-strong-s...


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