19 October 2018

China engineers yuan fall in reform push, WSJ says

China’s central bank engineered the recent decline in the country’s currency to prepare the yuan for wider trading, the Wall Street Journal reported Wednesday, citing people familiar with the central bank’s thinking. Beijing intends to use the weaker yuan to thwart short-term speculators betting on a continued rise and to introduce greater two-way volatility into its trading, the report said. The move shows that Chinese leaders are pressing ahead on financial reforms amid hopes the yuan could one day rival the US dollar as the de facto global currency.

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