One man’s “manipulation” is another’s “active guidance”. A report from the finance ministry’s research institutes is advocating a steered weakening of the yuan to 6.93 against the dollar to help counter the slowdown in economic growth, Bloomberg reports.
The rate is currently 6.84, so that is not much by way of weakening and the report makes a point of saying that devaluing the yuan will do little in itself to stimulate the economy. Nor will such comments do much to disarm critics of China’s currency policy, especially those in the U.S.
China Bystander 