Currency policy still lacks clarity one year on from RMB panic

The global market panic following the step down in the renminbi fixing rate a year ago turned out to be overdone. The currency has since weakened further, but the large scale competitive devaluation that many feared has not materialised. Even so, the People’s Bank has struggled to manage the exchange rate in a clear and consistent way ever since, hurting its ability to guide future expectations for the currency.

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