On Tuesday, Chinese officials are intensifying efforts to repress stakes against their own currency, the yuan, and hopefully help ease leery investors, as the People’s Bank of China has set an additional fix for the yuan which were backed by what dealers said was aggressive yuan buying offshore.
Subsiding certainty in Mainland China's administrative decisions has incited shareholders to panic and withdraw from the fiasco economy. It was expected that the yuan will plunge more which has broadened the breach amidst the rigidly governed yuan as well as the Hong Kong-based offshore rate.
The yuan has depreciated more than one percent since the start of the year, having lost 4.7 percent against the dollar last year, and the accelerated slide had raised uncertainty over China's intentions regarding the exchange rate, according to Pete Sweeney, Chief Correspondent for China Economy and Markets for Reuters.
"The strength of its (the PBOC's) actions appears to have reached the 'nuclear-weapon' level, and is comparable to that of the steps taken by other central banks when they previously fought against international speculators, such as George Soros," said a senior dealer at a European bank in Shanghai.