China’s National Development and Reform Commission (NDRC) pledged to increase the flexibility of the reminbi’s exchange rate, igniting market speculation that adjusting announcement could foreshadow changes to the country’s tightly managed currency regime, reported Reuters.
The pledge came in a report from the NDRC in the wake of a recent reiteration of China’s intention to maintain currency stability.
The report said that China will “continue to improve the exchange rate formation mechanism, increase the RMB’s exchange rate flexibility, strengthen regulations on cross-border capital flows, and keep the RMB’s exchange rate basically stable at reasonable levels.”