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Central Bank Sidesteps Questions on Yuan Reference Rate After Plunge

A Bloomberg News report that the People's Bank of China told banks to suspend the use of the
A Bloomberg News report that the People's Bank of China told banks to suspend the use of the "countercyclical factor" when calculating the yuan's daily reference rate triggered a sell-off of the Chinese currency on Tuesday. Photo: Visual China

China’s central bank isn’t saying whether it has changed the way it calculates the yuan’s daily reference rate. But based on the Chinese currency’s recent dive against the U.S. dollar, a lot of people believe it has.

The People’s Bank of China (PBOC), in a response to an emailed request from Caixin, neither confirmed nor denied that it had told banks to suspend the use of the “countercyclical factor” when they calculate the daily reference rate, as reported by Bloomberg News on Tuesday.

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