Economics
A Yuan-Revaluation Surprise
China ended the currency's direct peg to the U.S. dollar sooner than expected. The move impacts bonds, regional currencies, and oil prices
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It's no surprise that China would move to revalue its currency against other major ones. The big shock for financial markets is that it happened well ahead of expectations.
In a historic move, Beijing announced on July 21 it will no longer peg the yuan to the U.S. dollar, an arrangement that had been in place since 1994. China will tie the yuan to a basket of currencies instead.