China’s offshore yuan is weakening even after the ‘strong’ CNY fix

The 500+ point gap between the estimate and the actual is the largest ever recorded.

The PBOC has been setting the CNY stronger (i.e. lower USD/CNY) than the estimate for 11 days in succession. This is a ‘signal’ from the PBOC that they’d like to slow the rate of decline of the yuan. And, maybe they have, we’ll never know for sure what the counter-factual might have been. Still, the yuan is weak, the USD is rampantly strong.

Offshore yuan has slipped again today (ie higher USD/CNH). It can;t be too long before there is a “7” in front of this:

usdcnh chart 333 07 September 2022
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