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“The move came as April exports blew past expectations, which appeared on the surface to indicate that both China’s economy and global demand were on the mend. But economists were quick to suspect the figures were artificially inflated by investors who were disguising speculative bets on the yuan currency as trade payments.  Faced with the risk that such inflows could cause the yuan to appreciate so quickly that it destabilizes exports and the broader economy, the People’s Bank of China (PBOC) has begun intervening heavily in the domestic currency market this year, buying up dollars and selling yuan.”

http://www.moneynews.com/FinanceNews/China-Currency-War-Yuan-Export/2013/05/08/id/503340?s=al&promo_code=136B9-1