“The move represents a concrete follow-up to the recent rhetorical change in the official line that the RMB exchange rate is close to an equilibrium level.
“By reducing the RMB’s attractiveness to hot money, greater two-way exchange rate risk makes possible capital account opening, which would be a logical next step.
“If so, we are in the early stage of what will be as momentous for China as WTO accession in 2001.”
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