The chief economist of the People’s Bank of China, Ma Jun, reasserted on Monday that the central bank’s daily fix of the yuan’s trading band is based on the previous day’s closing price and changes in the currency basket against which it is valued, Bloomberg reported, citing a statement published to the central bank’s website. Ma’s statement came days after a 0.5% devaluation in the currency helped roil global markets and followed claims from JPMorgan Chase & Co. that the weaker fixings were “a clear confirmation of a shift in the mindset of Chinese authorities” to favor weakening the yuan against the dollar.
China Economic Review