China Strengthens Yuan Most Since Nov 2014 After PMI Hits 3-Year Low, PBOC Offers “Hope” As A Strategy For Stocks

• I thought China wants to devalue their Yuan. After all they devalued it at least 3x in the past few weeks. Why are they now strengthening their currency? The earlier devaluation of the CNY is not what it seems. It is really to provide cover for the dumping of US treasuries (and USD) to the tune of at least US$106B. When they sell the dollar, the CNY will strengthened. So a ‘devaluation’ of the CNY will keep the exchange rate stable and economic growth unaffected. The Chinese will then not be blamed for the collapse of the dollar and the global financial system. All bets are off, however, when they have cleared all their US treasuries and dollar reserves.
  –
• China Strengthens Yuan Most Since Nov 2014 After PMI Hits 3-Year Low, PBOC Offers “Hope” As A Strategy For Stocks
  by Tyler Durden, www.zerohedge.com 
  Having exposed the culprit for all of its economic and market woes, China is likely going to have problems explaining why its economic plague is still spreading (with South Korean exports collapsing and Japanese Capex growth slowing) and China’s official manufacturing PMI slipped into contraction for the first time in 6 months (to 3 year lows). Amid the face-saving clean-air of Parade Week, the appearance of awesomeness must prevail and following the worst quarter since Lehman, stocks are indicated lower despite having received some ‘help’ into last night’s close. PBOC proxies push ‘hope’ as a strategy for stock stability (even as US markets and oil are re-collapsing) as margin debt drops to an 8-month low – still double YoY though. PBOC fixes Yuan 0.22% stronger- the biggest jump since Nov 2014 – as it injects another CNY150bn via 7-day rev.repo.
  –
  read more.

end