- September 29, 2022
- Posted by: Stratford Team
- Category: Economy
The offshore renminbi exchange rate fell to a record low on Wednesday, putting further pressure on China’s central bank to directly intervene to prop up the country’s currency.
The offshore rate fell as much as 0.7 per cent to Rmb7.2281 against the dollar, the lowest on record since Hong Kong clearing banks were first allowed to freely open renminbi accounts in 2010.
Meanwhile, the more tightly regulated onshore rate also fell 0.7 per cent to Rmb7.225. That drop took the onshore rate down 13.6 per cent for the year to date, underscoring the impact of widening policy divergence between a dovish China seeking to shore up growth and a hawkish US Federal Reserve.
Measures taken by the People’s Bank of China have so far stopped short of deploying significant foreign exchange reserves, instead relying on indirect measures to discourage bets on continued falls and slow the pace of depreciation.
On Monday, the central bank introduced new measures…
