Do it when it Fits, but Do it in one Bold Step!
by Prof. Dr Norbert Walter, Chief Economist, Deutsche Bank Group
When the People’s Bank of China (PBoC) took the first step since 1997 to revalue the renminbi on July 22 last year, it proved to be nothing but a tiny step in the right direction. Brief excitement in the financial markets was quickly followed by the realisation that nothing had really changed at all a currency basket had been introduced; however, its composition was kept secret.The PBoC allowed the renminbi a daily fluctuation,but only of 0.3% against the US dollar and of 1.3% against all other currencies. Surely this loosens the peg per definitionem. However, those praising the winds of change of July 22
back to Risk Management category
TMI is published in association with:
Click here for international partners
Treasury Management International showcases topical, pragmatic solutions and strategic insights on treasury, cash management, foreign exchange and other issues affecting treasury and financial professionals, together with treasury and finance news, education and opinion. With real-life treasury management experiences and case studies at its core, TMI provides valuable material for all practitioners - from experienced treasurers and CFOs to those new to the profession.
ADVICE TO READERS
While all reasonable care has been taken to ensure the accuracy of the publication, the publishers cannot accept responsibility for any errors or omissions. All rights reserved. No paragraph or other part of this publication may be reproduced or transmitted in any form by any means, including photocopying and recording, without the written permission of P4 Publishing Ltd or in accordance with the provisions of the Copyright Act 1956 (as amended). Such written permission must also be obtained before any paragraph or other part of this publication is stored in a retrieval system of any kind.