The change in China’s exchange rate regime announced Thursday is just the first of many adjustments, predicted Federal Reserve chief Alan Greenspan.
“I look at it as a first step in a number of further adjustments as they invariably increase their participation in the world trading markets. And so I think it’s a good start,” Greenspan told the Senate Banking Committee.
The People’s Bank of China said earlier that it is dropping its yuan-dollar peg in favor of one vs. a basket of currencies. The government also lifted the value of the currency by more than 2%.
Source: Business World