PBoC opens renminbi up to market forces
Rate now more affected by markets, triggering devaluation
The People's Bank of China (PBoC) announced plans to link the value of the renminbi to the interbank foreign exchange market today (August 11), triggering a sharp devaluation in the currency.
In a statement, the central bank said the exchange rate would be set according to the closing rate of the interbank foreign exchange market on the previous day, "in conjunction with demand and supply conditions in the foreign exchange market and exchange rate movements of the major currencies".
As a
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