Trying to second-guess China’s policymakers is usually futile, so no one should have been surprised when the People’s Bank of China (PBoC) raised its USD/CNY fixing on March 22 by the largest amount since the start of the year.
The move enabled USD/CNY to trade through 7.20 for the first time since November 2023 and led to speculation that China’s central bank could move towards a managed depreciation regime, where the daily fixing is increased slowly, but at a pace dictated by the upper bound of its 2% trading range.
Thanks for your interest in Euromoney!
To unlock this article:
