China’s State Administration of Foreign Exchange has announced that it will be loosening its hold on the RMB, by allowing banks to freely decide their own exchange rates against the USD.
Banks will now be able to set the rates based on market demand, making the move towards becoming a bigger player on the international stage, after immense international pressure to stop currency interventions and allow the market to determine the rate.
Analysts have said that the move is an important one, but will mainly affect small customers, mostly individuals as larger corporate clients’ trading prices are decided by market rates.
The move comes two months after the People’s Central Bank doubled the parity rate to allow the RMB to trade 2 percent either way against the USD.
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Keywords: Chinese Banks Given RMB Exchange Freedom
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So it seems it will cost more to get my money out of the country then, as I'm sure banks will never undercut the rate they find online that day.
Jul 04, 2014 21:36 Report Abuse
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