WSJ on Yuan: PBOC is unwilling to let the currency slide too far, too fast

The Wall Street Journal ran a story on the Chinese currency this Thursday, in light of the ongoing weakness in the Yuan against its American counterpart.

Key Quotes:

“The widening gap (between onshore & offshore yuan) is complicating the central bank's strategy of letting some air out of the currency at a pace Beijing dictates”

“A weaker yuan offshore could encourage more Chinese businesses and individuals to seek to convert their currency into dollars, potentially adding downward pressure on the domestically traded yuan”

“China has tolerated a weaker yuan since early October ... the pace of depreciation has quickened since Donald Trump's election win ... The People's Bank of China is unwilling to let the currency slide too far, too fast, for fear that might lead to destabilizing capital flows out of the country”