| Read from the news, the floating will be restricted within 0.3%. And at same time, the interest rates of USD and HKD are increased.
...the new system is not exactly a free floating system yet, I would more consider it still as a pegged system... difference is that instead of pegging RMB to USD only, now RMB is pegged to a basket of currencies including USD, EUR, JPY etc., and a bit more flexible with a restricted floating range. Personally I think it's a wise decision to make small moves and test the consequences before any big change. |
RMB Finally Goes Strong