PBoC set CNY fixing rates lower again

PBoC spiked the USD-CNY fixing rate by another 1008pips, or 1.62% this morning to 6.3306. The fixing rate is 0.09% weaker than yesterday's closing. The offshore CNH breached above 6.50 this morning after the CNY fixing, notes Commerzbank. 

In this case, the CNY-CNH spread widened to around 1.3%. Today's CNY fixing rate appears in line with PBoC's statement that it would promote the market-oriented fixing rate mechanism.

IMF also stated this morning that a more market-determined exchange rate would facilitate SDR operations in case the renminbi were included in the currency basket going forward, states Commerzbank. As the CNY weakens sharply, Asian currencies are still under pressure, with Bloomberg Asia currency index falling by roughly 1% overnight.