Endless banter on renminbi levels helps no one
After a long slumber, it appears the old China-US dispute over exchange rates is flaring up again. In comments this week, US Treasury Secretary Jacob Lew seemed to express the view that the PBoC had made its point on the need for two-way volatility, and it was time to ‘get back’ on the path of a market-determined system. While the debate over the renminbi’s valuation remains legitimate, Lew’s comments probably miss the point in what needs to be a more mature discussion in adjusting global imbalances.
Read the full report: UBS