The PBOC is aiming to restrict increased international inflows, analysts told the news source. At the same time, the Asian nation is working on establishing the renminbi as a global reserve currency, on par with the U.S. dollar.
"There were way too many structured products (confident about appreciation of the yuan) bought by private-bank investors and wealthy individuals," offshore yuan and Hong Kong dollar trading head Eric Yum with J.P. Morgan Chase & Co. told The Wall Street Journal on Monday. "Panic selloff was triggered when the PBOC kept fixing the yuan at weaker levels."
Bloomberg reports the Asian nation is working hard to underscore the strength of the world's second-largest economy, despite recent economic data suggesting its recent struggles are not letting up but in fact will continue this year.
Finance Minister Lou Jiwei on Sunday told the news source "there will be ups and downs" regarding the value of the yuan, noting recent movement has been "within normal range."
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