China to Abandon Its Currency Peg

China is set to allow a gradual appreciation of the renminbi against the US dollar after warning that the exchange rate would remain “basically stable” in spite of a decision to abandon its currency peg. The Chinese central bank announced an end to the peg in a statement on Saturday, one week before the G20 summit in Toronto where Beijing was likely to have come under strong pressure over the level of the renminbi – FT

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