| Janet Yellen arguably has more influence over Chinese policy right now than her colleagues in Beijing. China’s currency traded at its weakest level against the U.S. dollar in more than five years this week, and no global panic has ensued. One reason: Beijing has put the yuan quite literally on a predictable path. But this can only continue so long as markets move in a way Beijing can tolerate.
China has jerked back and forth on its currency policy since last August, when a surprise change on how it manages the yuan sent markets haywire. The long-term intent seems to be to push through changes that will eventually have the yuan largely dependent on markets...............................................Full Article: Source
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