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Reuters reveals China asked banks to suspend counter-cyclical factor in yuan fixing; market reacts

Reuters reported exclusively that China’s central bank had asked local banks to phase out a special tool it uses to prevent excessive declines in the currency, a move analysts took to mean it is willing to allow some weakness in its currency. The People’s Bank of China’s foreign exchange system later issued a statement confirming the Reuters report that banks participating in a daily operation to determine the yuan’s trading mid-point have phased out use of the counter-cyclical factor, or so-called X-factor, in its formula.
The post Reuters reveals China asked banks to suspend counter-cyclical factor in yuan fixing; market reacts appeared first on Reuters News Agency.

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