PBOC: Yuan FX rate isn’t a tool to combat commodity inflation – Bloomberg

The People’s Bank of China (PBOC) clarified Thursday that the exchange rate adjustments cannot be used as a tool to boost exports or counter the impact of the rising inflation, driven by higher commodity prices.

Key quotes (via Bloomberg)

“The foreign exchange market is currently “balanced” and the yuan rate could go either way in the future.”

“The key is to properly manage expectations, firmly crackdown on attempts to manipulate the market or ‘maliciously’ create one-sided expectations.”

“Enterprises and financial institutions should adapt to a two-way fluctuation of the exchange rate.”