Since 11th January, there has been heavy intervention by the central bank in the yuan offshore market.

ANBOUND's research team is of the view that the aggressive intervention by the central bank in Hong Kong’s offshore market means that the central bank’s short-term priority is to protect the exchange rate rather than to pursue the internationalization of RMB.

In the long run, this approach is disadvantageous to RMB internationalization, China still needs to focus its efforts and resources in building the capacity to handle the exchange rate problems in the middle-long term and to improve the effectiveness of market communication.