China Announces Yuan’s Flexibility

By Michael Wei and Benjamin Kang Lim

China will gradually make the yuan’s exchange rate more flexible, the central bank said on Saturday a week before a G20 summit, strongly suggesting that it was ready to break the currency’s 23-month-old dollar peg.

However, it all but ruled out a one-off revaluation or major appreciation, saying there was “no basis for big fluctuations or changes” in the exchange rate.

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