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1/4
The author says that "since 2015, the central bank has allowed the currency to trade more freely. The PBoC’s shift has enabled the renminbi to undertake the same signalling role that the yen historically played regarding the dollars prospects." https://www.ft.com/content/0534f14b-20c0-4206-83fd-77f98be6326d
The author says that "since 2015, the central bank has allowed the currency to trade more freely. The PBoC’s shift has enabled the renminbi to undertake the same signalling role that the yen historically played regarding the dollars prospects." https://www.ft.com/content/0534f14b-20c0-4206-83fd-77f98be6326d
2/4
I disagree with much of this article, but especially the claim that the RMB began trading freely in 2015. In fact what happened is that the PBoC shifted from targeting USD to targeting a basket of currencies (the CFETS RMB Index). If you continue tracking the RMB against...
I disagree with much of this article, but especially the claim that the RMB began trading freely in 2015. In fact what happened is that the PBoC shifted from targeting USD to targeting a basket of currencies (the CFETS RMB Index). If you continue tracking the RMB against...
3/4
the dollar, it might seem that the RMB has become much more volatile, but most of that is simply USD volatility.
Against the basket, on the other hand, the RMB has been very stable: it is less than 1% higher today, for example, than it was four years ago. What is...
the dollar, it might seem that the RMB has become much more volatile, but most of that is simply USD volatility.
Against the basket, on the other hand, the RMB has been very stable: it is less than 1% higher today, for example, than it was four years ago. What is...
4/4
more, during the past four years it has always has remained well within four percentage points of its current level, and at least 3/4s of that time it has remained within two percentage points of its current level. This is far from being a freely floating currency.
more, during the past four years it has always has remained well within four percentage points of its current level, and at least 3/4s of that time it has remained within two percentage points of its current level. This is far from being a freely floating currency.
