Ex-PBOC adviser Yu: Free-Floating Yuan is nothing to fear
|Yu Yongding, a scholar at the China Academy of Social Sciences (CASS) and former China’s central bank adviser, made the comments amid a growing debate among Chinese economists about whether the yuan should be allowed to trade more freely in the official Shanghai Securities News today, as cited by Reuters.
Key Quotes:
“How the future exchange rate will go depends on central bank policy and I have no way of reading their minds, but I want to say that we should overcome the irrational fear of a free-floating yuan.”
“(China) should be the country least afraid of a fluctuating exchange rate.”
He suggested the central bank set a “bottom line” of 25 percent for the yuan to depreciate.
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