No one believes the Chinese central bank. Markets believe that the yuan fall again on Friday
Third consecutive day
The People's Bank of China would devalue its
currency, and each time convincing all
that the weakening of the currency - this
one-time event. That is why the
PBOC statement has
no one pays attention. Asian
Markets have long closed, but on the other
sites trafficking is in full swing,
and participants in these markets are betting
the further weakening of the yuan. Average
Traders are waiting for that on Friday, the yuan will fall
at least another 1%.
Tuesday regulator
lowered the official exchange rate of the yuan already
4.65% - to its lowest level in the past
four years. And most of all investors
resent the apparent hypocrisy of the regulator:
since Tuesday, when the rate was lowered
1.9%, the central bank said that the adjustment
disposable, and therefore nothing to fear.
But in fact the Central Bank for the third consecutive day
He continued devaluation policy.
According to some estimates, the devaluation of the yuan
in the end will be about 10%.
Of course, if you look
On the other hand, the PBOC
It can not in fact talk about the market
every step, usually one of the
It does not. Recall, behavior
Russia's central bank last year,
when he put on the table everything
cards and financial institutions simply
We played against him.
In addition, Chinese
Regulators are trying to pacify the market is not
only verbal interventions, but
very real limitations. For example,
State Administration of Foreign Exchange
control China yesterday appealed to banks
with the request to limit the sale of dollars to some
companies. But that's not all. By
According WSJ, Chinese regulator intervened
in the course of trading in the foreign exchange market in recent
15 minutes before closing and
through intervention softened
the fall of the yuan.
It seems that the Chinese government
and will continue to gradually weaken
its currency, and at the same time in every one
to complicate the life of speculators, trying
avoid the situation gets out of hand
control. But from the devaluation of the yuan has
affected other countries: complexity
occurred in Japan, Argentina (which
stores in $ 33.7 billion) of Chinese currency and
even in the US - Chinese monetary actions
authorities may make major adjustments
Fed plans. Experts believe that
rate hike at the moment
It would be a big mistake, and most likely,
the event to which Fed so long
preparing, once again have to be postponed. A
judging by the dynamics of the yield of the US
government bonds, the market does not believe in
rate hike in the near future.
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