China sets yuan lower again, growth cut

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The People’s Bank of China (PBOC) has set the yuan reference rate at 6.1580 versus 6.1556 yesterday. No liquidity drainage today but SHIBOR is still climbing:

shibor

The chart remains very sharply up for US/CNY and is closing swiftly on the erasure of two years of appreciation:

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If there are any CNY longs left, they’re getting a caning.

Also today from Reuters:

The Chinese Academy of Social Sciences (CASS), one of Beijing’s top government think tanks, has revised its 2014 GDP growth forecast down to 7.4 percent, below the official 7.5 percent target, and says that growth could slow to as low as 7 percent, state media reported on Wednesday.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.