Just what we suspected: China lied

Well, China reneged on its new floating yuan policy. The AP reported today that China will keep its currency “basically stable and reasonable” just a few weeks after saying it would allow the yuan to float. After the June 21 announcement that “People’s Bank of China has decided to proceed further with reform of the RMB exchange rate regime and to enhance the RMB exchange rate flexibility.” we questioned whether the intent was genuine. Less than three weeks later, it is clear China only made that announcement to deflect discussion of the exchange rate policy at the G-20 meeting.

How much did the renminbi appreciate since June 21? A whopping 0.75%.