“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.”
To contact the Bloomberg News staff on this story: Zheng Lifei in Beijing at firstname.lastname@example.org
To contact the editor responsible for this story: Paul Panckhurst at email@example.com