It is a given in polite economic society that China should move toward a more flexible exchange rate regime. The IMF says so, and the U.S. Treasury  has often echoed this point – though more recently, Treasury has wisely taken to emphasizing the need for greater transparency as much as the need for greater flexibility. More ...

There is little doubt that China rather actively managed its currency in 2023. For a period of time in the fall, the People’s Bank of China’s (PBOC’s) central parity rate, or “fix” – the midpoint of the trading band of China’s yuan – didn’t change. The fix was fixed. That had the effect of blocking ...