Even as China gets serious in fending off speculative inflows that could cause the yuan to jump and destabilize the economy, analysts tell CNBC the measures taken by Beijing will do little to derail a strengthening Chinese currency.
Strength in the yuan has taken markets by surprise in recent times, appreciating at a rapid pace of around 1.5 percent against the U.S. dollar since mid-February. On Thursday it hit a record high of 6.1336 per dollar in morning Asian trade after the People’s Bank of China (PBOC) fixed the yuan mid-point at the highest level since the 2005 revaluation.
The central bank indicated on Wednesday that it was ready to take steps to control the wave of capital inflows that threaten to destabilize exports as the yuan appreciates rapidly days after the foreign exchange regulator came up with new rules to crack down on inflows disguised as trade payments.
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