Update December 17, 2015

Dhaka 12-19 pm, 22-October, 2020

China’s central bank hints at further devaluation

Sumel Sarker

Currency4

China’s central bank hints at further devaluation

17 December 2015, Nirapad News: On the eve of another highly-anticipated US monetary policy decision, China hinted at further devaluation of its currency, according to a global media report.The People’s Bank of China (PBoC) will measure the level of the renminbi against a basket of currencies, not just the US dollar, the report added noting the PBoC’s statement to this effect is considered by to make matters some analysts easier for Beijing to guide the renminbi lower against the greenback.

The bigger — or more immediate — question is whether in the near-term it has the power to delay a Fed rate rise, it further said.Back in August, the PBoC caught markets off-guard with a surprise devaluation of the currency, which may have influenced the Fed’s decision then to keep interest rates on hold at their September meeting, when many investors expected the tightening cycle to begin, according to the report.

The so-called “offshore” renminbi rate — which is traded outside the mainland, around the clock and not subject to a trading band — was trading 0.1 per cent weaker at Rmb6.5350 per dollar today, having depreciated by 0.5 per cent last Friday following the PBoC’s announcement, it added.

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