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China's Central Bank Is Rethinking Relations With Markets

  • Removal of fixing curb on currency helps yuan liberalization
  • PBOC will have to walk a difficult tightrope in 2018: analyst
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Bloomberg’s Emma O’Brien reports on China’s decision to make a change to the regime used to manage the yuan.(Source: Bloomberg)
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As the end of People’s Bank of China Governor Zhou Xiaochuan’s term approaches, a firmer yuan and calm markets are providing a window to get some of his long-term reforms back on track.

The latest news in the two-steps forward, one-step back move to a more freely traded currency came Tuesday, as Bloomberg reported the central bank has tweaked its management of the daily currency fixing, removing a hurdle to the influence of market forces. PBOC adviser Huang Yiping says that shows authorities’ desire to further liberalize the exchange rate.