Renminbi ‘not for gambling,’ state media warns as value surges
China has warned foreign investors not to treat its currency as a gambling tool after a recent rise in the value of the renminbi.
The central bank was taking measures to restrict foreign currency exchange in the country, so speculation in the renminbi would become more costly, Xinhua News Agency said in an article on Wednesday.
It warned of emerging signs of speculation in the Chinese currency and said that investors “should not treat the renminbi as gambling tokens.”
The news agency also blamed an economic stimulation policy in the United States for the renminbi’s increased value, claiming that American officials had been deliberately underplaying the risks of inflation.
The inflow of foreign currencies into the A-share market this year has reached 209.4 billion yuan (US$32.8 billion), Bloomberg data shows. That has already exceeded the total amount of 208.9 billion yuan recorded in 2020.
On Wednesday morning, the renminbi’s central parity rate against the U.S. dollar was set at 6.3773, falling for the first time in seven days.
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