Does the Prospect of RMB Depreciation Depend on What China’s Central Bank Wants?

Stabilizing the RMB exchange rate not only requires comprehensively striking back the short-selling speculation but, more importantly, reversing the expectation of RMB depreciation and well managing the expectation. Substituting a new exchange rate index for the old exchange rate index has not impressed the international market. The RMB exchange rate should be anchored to the USD exchange rate to build confidence.

Yi Xianrong, Researcher, Chinese Academy of Social Sciences via CHINA US Focus http://ift.tt/1NzhFna