China Is Asking Banks to Avoid Yuan Market ‘Herd Behavior’
- PBOC’s move adds to signs of wariness about pace of decline
- Yuan has tumbled more than 6% in past three months vs. dollar
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The People’s Bank of China’s recent efforts to support the yuan included a meeting Monday with the nation’s biggest lenders where currency stability was emphasized, according to people familiar with the matter.
The PBOC urged the banks to prevent any “herd behavior” and momentum-chasing moves in the foreign-exchange market, the people said. The central bank has plenty of tools to stabilize the market, will keep the yuan flexible and allow it to move in both directions, a PBOC official told the lenders in the meeting, according to the people.