From Bloomberg News (link)
China’s central bank said it will start withdrawing from the country’s currency market, allowing investors a greater role in setting exchange rates.
The People’s Bank of China sets daily reference rates for trading around which its currency is allowed to move, buying and selling the yuan to keep its value stable. U.S. lawmakers accuse China of using such measures to artificially weaken the yuan and fuel an export boom that has expanded the U.S. trade deficit with the Asian country to a record for five straight years.
“The frequency and strength of the central bank’s open market currency operations will gradually weaken and be phased out,” the bank said in its quarterly monetary policy report.
