The renminbi suffered its worst day in three months after China’s central bank scrapped two rules intended to bolster the currency in a sign that official nervousness about currency depreciation and capital flight has eased.
Early Tuesday it appeared the RMB had suddenly fallen more than 8%, but no deliberate devaluation took place. Instead, the culprit was a technical problem
Chinese currency hits weakest level against dollar since January after reserves fall by more than forecast in September
The authors examine the impact of renminbi revaluation on foreign firm valuations, considering two surprise announcements of changes in China’s exchange rate policy in 2005 and 2010 and employing data on some 6,000 firms in forty-four economies....
In a sudden move clearly intended to stave off criticism at the G20 meeting in Toronto, China loosened the yuan’s twenty-three-month-old peg to the American dollar earlier this month, allowing its currency to appreciate against the greenback....
