| If the Peoples' Bank of China startled global financial markets on Tuesday this week when it unexpectedly loosened its grip on the value of the Chinese currency, Wednesday's further, unanticipated slide in the renminbi was all the more of a shock to many.
The renminbi or yuan, as it's more commonly known, had already taken its biggest one day drop in a decade on Tuesday following a move the Peoples' Bank of China (PBOC) had described as a one-off adjustment to the way it calculates its daily "fix" for the renminbi exchange rate. What only became clear on Wednesday was that the system change will make the renminbi more volatile and, for now, more likely to fall than to rise...............................................Full Article: Source
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