The IMF continues to pressure the People’s Bank of China to disclose their positions in the derivatives market, as the bank is relying on derivates as their main tool for supporting the nation’s currency.
As China’s economy remains stagnant, investors have been looking for a safe currency to invest in. Investors have been finding a safe currency in Swiss franc, but more notably the Japanese yen.
China has recently raised Yuan’s reference rate by 0.54% to 6.3154 against the U.S. dollar, which is the largest boost in the decade.
The Australian dollar is facing a torrid time as of late, as the currency plunged 1% on Wednesday after weaker than expected inflation spurred rumour of a third rate cut this year by the Reserve Bank of Australia.
China’s foreign-exchange reserves fell by a record last month. The reason behind it is that the central bank sold dollars to support the yuan after the biggest devaluation in the last 2 decades spurred bets on continued weakness.
