Posted Sep 29, 2022, 2:10 PMUpdated on Sep 29, 2022 at 2:38 PM
Within a week, three leading central banks rallied in the face of chaos in the financial markets. A sign of the tensions and the great feverishness that reign there. After the Bank of Japan on the yen, the Bank of England on British debt, it is the turn of the People’s Bank of China (PBOC) to prepare to intervene to support the yuan. The fall of the Chinese currency is too strong and too fast in the eyes of Beijing which has multiplied the warnings.
Too marked a weakening of its currency worries foreign investors, which the country badly needs in a context of a sharp slowdown in its growth. The dollar has jumped 4.5% since the start of the month against the Chinese currency, which hit its lowest level in 14 years at 7.25 renminbi per dollar.
