Hand of Central Bank Seen behind Sudden Weakening of Yuan

(Beijing) – A sudden weakening of the yuan this week has fueled discussion about whether the central bank was paving the way for a more flexible exchange rate system.

On February 19, the spot trading exchange rate of the yuan against the U.S. dollar reached a nearly two-month-high, at 6.0772. It closed at 6.0764, up 91 basis points from the previous day, depreciation of 0.15 percent.