While China tells the world it would revalue its currency when it's ready, its
central bank is studying some options to loosen the yuan's trading range beyond
its current 8.28 to the dollar, the Wall Street Journal reported, citing "people
knowledgeable about its thinking". The People's Bank of China has sought advice
from private banks, consultants and a number of central banks, including the
Hong Kong Monetary Authority, the US Federal Reserve, the International
Monetary Fund and in particular, the Monetary Authority of Singapore, where it
has been studying how Singapore values its Singapore dollar, which is a
"managed float" somewhere between China's government-regulated peg, and the
market-driven, floating US dollar. Some economists say this model is a good
middle-ground, which would enable China to claim a more flexible currency
system without opening the doors to speculative capital flows.