China’s foreign exchange regulator told businesses Friday to prepare for more volatility in the yuan, CNBC reports.. The yuan strengthened by roughly 1 percent this week against the U.S. dollar to levels not seen since July 2018. Although that is based on a midpoint set by the central bank, the People’s Bank of China, Beijing has been allowing markets to play a greater role in the exchange rate. “In face of exchange rate fluctuations, businesses should strengthen their risk prevention awareness,” Wang said, according to a CNBC translation of her Mandarin-language remarks. She said that rather than expect one-way strengthening or weakening of the yuan, businesses should prepare for two-way moves in the exchange rate, and hedge appropriately without speculating.

Source: The Standard October 24, 2020 05:03 UTC