Chinese regulators are taking measures to keep the renminbi’s dollar exchange rate stable as Beijing seeks to bolster confidence in the country’s currency and economy ahead of a key leadership summit.
The moves from authorities — such as holding off on cuts to short-term interest rates and keeping the currency’s dollar trading band firm despite the spot price pushing towards its official floor — have helped to stave off further falls for the currency, which is down 1.4 per cent this year at about Rmb7.1 to the dollar.
Those efforts come as markets look forward to potential policy signals from the “two sessions” gathering of top Communist party cadres in Beijing, set to begin on March 4 and where authorities have historically sought to minimise market volatility.