The PBOC has been focused on stabilizing the USD/CNY and USD/CNH rates, according to Cheung. These efforts are part of a broader strategy by the central bank to limit capital outflows and maintain the value of the yuan.
The Chinese central bank’s actions come amid global economic uncertainties and shifts in currency markets. By maintaining a strong bias towards CNY, PBOC aims to ensure stability in its currency exchange rates.
Cheung’s insights provide a deeper understanding of PBOC’s current monetary policy and its impact on the global forex market. The stabilization of the USD/CNY and USD/CNH rates is expected to play a significant role in curbing capital outflows from China.
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