More on China's state media commentary on tools to deal with 'panic' yuan sell off

<p>It's a mystery to me why the People's Bank of China would be referring to a panic sell in yuan, and yet here we are:</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-backed-news-said-ample-tools-to-stabilize-fx-market-even-if-yuan-enters-a-panic-slide-20230705/" target="_blank" rel="follow" data-article-link="true">PBOC-backed news said ample tools to stabilize FX market even if yuan enters a panic slide</a></li></ul><p>It's a surprising remark, intended to calm fears over further rapid selling of the RMB and stabilize the currency. For today CNH has been showing signs of holding around current levels. </p><p>A response from Mizuho Bank in Hong Kong agrees:</p><ul><li>“The state media commentary is intended to shore up investor confidence on yuan exchange rate and the depreciation trend will remain in control given a basket of policy tools to stabilize yuan if necessary,” </li><li>“The strengthened fix indicates that the PBOC is still in alert mode to defend the currency.”</li></ul><p>Still, I wouldn't have chosen 'panic' in my message to the market. </p><p>USD/CNH update:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.