China’s yuan exchange rate: is 6.66 a new sweet spot for the currency against the US dollar?
The number 666 may be associated with the beast in the Bible, but it could be a blessing for China’s central bank. China has struggled for five years to ensure the exchange rate does not fall too far below seven yuan per US dollar, but the currency has gained about 7 per cent against the US dollar in the past six months , stoking debate among Chinese economists over whether authorities should intervene to slow the rally.
Officially, the People’s Bank of China (PBOC) has quit direct intervention in the yuan exchange rate, leaving it to the market to decide how much it should be priced against the US dollar.
But that has not stopped speculation that Beijing is searching for a new comfort zone for the yuan’s value.