PBOC is effectively anchoring the Yuan to the dollar - WSJ

The Wall Street Journal (WSJ) reported a story overnight on the People's Bank of China efforts to stabilize the CNY.

Main Highlights:

China's central bank is effectively anchoring the Yuan to the dollar

Policy has helped stabilize the currency in a year of political transition and market jitters about China's economic management

The Yuan weakened more than 6% against the dollar in 2016; this year, it is up roughly 1%

Implied volatility-is around its lowest in nearly two years

The newfound tranquility may not last ... pressure on the Yuan to weaken could get dangerously bottled up, potentially bring bouts of sharp devaluation