| It is hard to fathom quite why so many people have been surprised by the recent fall in the value of the yuan. Over the past couple of weeks, the mainland currency has fallen 1.3 per cent against the US dollar.
That might not sound like much, but for the yuan it is the most abrupt decline since its 1993 devaluation, and it confounded legions of analysts and investors who had confidently expected the currency's strengthening trend to continue uninterrupted. Their confidence was misplaced. Despite all the talk about internationalisation and a greater role for market forces, the yuan remains neither fully convertible nor freely floating...............................................Full Article: Source
|