China ends dollar peg, renminbi back to pre-crisis regime
China's currency policy has returned to the framework employed before the global financial crisis, but the new environment may not be so hospitable, warn analysts.
The People's Bank of China announced on Saturday evening that the renminbi was to exit the peg to the US dollar. China will now determine its exchange rate with reference to a basket of currencies, with the trading band for USD/CNY the same as the one that existed before the global financial crisis.
On Sunday, the PBOC announced any revaluation of the renminbi versus the dollar will be modest and gradual; this announcement was made only in Chinese and seems to be a defensive move agai…
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