Signs that the PBoC could step in to “normalize” domestic financial conditions have helped give markets a boost, as Ling Tao, deputy director in the PBoC’s Shanghai branch, said the central bank will guide interest rates to a reasonable level and that large banks will help stabilize liquidity. In our view, investors should use market rebounds to gradually bring their LATAM FX allocations back to “neutral levels”, taking advantage of liquidity.
Read full report: FX Daily
Scotiabank