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Yu Yongding criticizes the PBOC's August 2015 move to set the yuan's central parity against the previous day's close within a 2% band. The reform triggered market panic and a 3% yuan decline in four trading days, and it was abandoned.
He argues the step toward a market-driven exchange rate was wrongly reversed.
The commentary concerns the design of China's exchange-rate regime rather than a new policy change. It has no direct near-term effect on feed ingredient prices.
project-syndicate.orgYu YongdingAug 24, 2017After 138 past policy events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (47% higher; middle half -0.4% to +0.4%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
