The People’s Bank appears to be shifting its management of the renminbi to tracking a currency basket rather than the dollar. While some will see this as cover for currency devaluation, we suspect the goal is to keep the renminbi’s value broadly stable rather than be compelled to have it follow the dollar higher, as it has over the past couple of years. But the haphazard way in which information is dribbling out is doing nothing to generate confidence.
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