Market forces now driving China’s renminbi lower

 

Market forces rather than China’s central bank are now the biggest force driving the renminbi lower, according to local traders, marking a decisive shift in trading of the currency which became a two-way bet last month.

 

The renminbi’s decline began one month ago with sustained intervention by the People’s Bank of China, but most companies and banks remained on the sidelines in the onshore market, anticipating that depreciation would be shortlived.

 

 

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