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By Hans Bevers, Senior Economist Petercam
Attending the Peking University summer school program, I feel privileged to be able to have lengthy discussions with other students on China’s economy. Next to learning more about the country’s historical economic development over the last century, recent events including slowing growth, boom-bust signs in the stock market and this week’s currency devaluation in particular offer a lot to talk about. How should we read the latest developments?
Over the last two days China’s central bank devalued its reference exchange rate against the USD (in two steps from 6.12 to 6.33). China’s exchange rate regime can be described as a floating peg. Monetary authorities let the RMB move more or less freely in a...
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