Renminbi slides after China relaxes currency controls

Financial Times, Sep 11, 2017
by Gabriel Wildau, Tom Mitchell, and Jennifer Hughes

The renminbi suffered its worst day in three months after China’s central bank scrapped two rules intended to bolster the currency in a sign that official nervousness about currency depreciation and capital flight has eased.

The renminbi has gained 6.9 per cent this year, reversing all of last year’s record loss of 6.5 per cent and putting the currency on pace for its best year ever. China’s foreign exchange reserves have risen for seven straight months since hitting a three-year low in January.

On Monday the Chinese currency’s onshore rate fell 0.5 per cent against the dollar to Rmb6.523 — its biggest one-day fall since June. On Friday, the renminbi reached Rmb6.4349, its highest since December 2015.

To continue reading, click here.