BEIJING (Reuters) - China's central bank has resumed use of a counter-cyclical factor in the yuan midpoint-fixing mechanism, three sources told Reuters on Friday.
The move is a reversal of a step taken in January to loosen control over the yuan exchange rate, when the People's Bank of China effectively reduced the influence of the "counter-cyclical factor".
China introduced the "counter-cyclical factor" in 2017 in what regulators said was an effort to better reflect supply and demand, lessen possible "herd effects" in the market and help guide the market to focus more on macroeconomic fundamentals.
The central bank did not immediately reply to a faxed request for comment after business hours on Friday.
(Reporting by Reuters Shanghai bureau)
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