China central bank: Volatility in yuan due to escalating US trade friction

The yuan lost 1.6% against the dollar last week, but there were signs in the last few sessions that authorities were trying to stabilise it.

SHANGHAI: Volatility in China’s yuan since August is a normal market reaction to escalating trade frictions stoked by the United States and was caused, to some extent, by Washington’s decision to raise tariffs, a senior Chinese central bank official said.

Zhu Jun, director-general of the People’s Bank of China’s international department, made the comments last Saturday to a forum held in the northern Chinese province of Heilongjiang.