The Chinese yuan’s rally in 2017 started from the introduction of a counter-cyclical factor in daily fixing in May.
That same factor can well explain the rapid gain seen in the yuan last Friday, August 24, when the People's Bank of China (PBOC) said such an adjustment mechanism had resumed.
Many market participants may not be familiar with the details of counter-cyclical factors. Check out this article specially written by our Chief Strategist, Jimmy Zhu, for CGTN and learn about the counter-cyclical factor in RMB fixing.