I don’t believe that we fully understand all the controls that China has in place. With as much currency reserves (U.S. dollars) as they have, this shouldn’t really impress anyone. If, as this article says, this is meant to cut election year rhetoric, I think the Chinese leaders did well.
Originally posted on Business 360:
Hong Kong (CNN) – Over the weekend, China announced it was doubling the trading band of the yuan against the U.S. dollar.
The move was widely lauded as a step toward liberalizing the Chinese exchange rate and moving the yuan toward an internationally traded currency like the U.S. dollar, yen and euro.
“This underlines China’s commitment to rebalance its economy toward domestic consumption and allow market forces to play a greater role in determining the level of the exchange rate,” said Christine Lagarde, managing director of the International Monetary Fund, in a statement.
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