China’s central bank engineered the recent decline in the country’s currency as part of its efforts to prepare the tightly tethered yuan for wider trading, according to people familiar with the central bank’s thinking.
By guiding the yuan weaker, Beijing intends to thwart short-term speculators betting on a continued rise and to introduce greater two-way volatility into its trading, these people say.
The move is the clearest sign yet that Chinese leaders are pressing ahead on financial reforms, which include a more-freely-traded currency, amid hopes the yuan could one day rival the U.S. dollar as the de facto global currency.
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Lingling Wei, Wall Street Journal via CHINA US Focus http://ift.tt/1hlBRwP
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