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China's new Yuan indices means what

yesterday, China foreign exchange trade center including CFETS 13 currencies exchange rate index. Domestic commentators, it reflects the policy intention to guide the market changing views on the Yuan, no longer sees its peg of the currency. Western analysts believe that this devaluation of the Renminbi against the dollar opened the door, on the eve of Fed rate hikes stressed the currency basket, suggesting that even if the Federal Reserve raise interest rates boosted the dollar in the future does not mean that the Yuan must be appreciated.

yesterday, China foreign exchange Trade Center first released CFETS RMB exchange rate index. This index comprises 13 currencies, dollar's weight is 26.4% in a basket of currencies, the euro accounted for 21.4%, Japanese Yen to 14.7%. The date of release of the offshore Yuan/dollar exchange rate fell below 6.56, a four-year low. In offshore renminbi exchange rate closed at 6.4553 yesterday, creating the lowest since August 2011.

as of yesterday, on offshore six fell, weekly decline in August this year, since the new currency's biggest. People's Bank of China official website reproduced the same day China network commentator's article said, the RMB exchange rate should be not only the dollar as a reference, but also with reference to a basket of currencies. The new RMB exchange rate index will help to guide the market changed focus on bilateral exchange rates of the Yuan against the dollar in the past habits, increasingly effective exchange rate calculated with reference to a basket of currencies as the main frame of the RMB exchange rate level.

strengthen the Yuan devaluation of the USD decoupling as open circuit? United Kingdom Asset Manager Standard Life Investments believes that new Renminbi exchange rate indices suggested that, to prevent the stronger the Yuan's trade-weighted exchange rate, China could tolerate the Yuan against the dollar. Alexander Wolf, an economist of the Agency believes that Beijing is trying to reset the Yuan's exchange rate expectations, "when they expressed the hope that the stability of the Renminbi, meaning trade-weighted exchange rate stability, not the Yuan exchange rate against the dollar. Dollars for the future opened up further gains in the Yuan against the dollar. "The

United Kingdom referred to the financial times, the Chinese official stressed that currency analysts feel the currency basket, making the Central Bank let the Yuan gradually devalued, China. SLJ Macro hedge fund Partners co-founder Stephen Jen said: "the announcement linked to a basket of currencies or with reference to a basket of currencies may also discourage competitive devaluation of guilt. "Nomura said Stuart Oakley, Director of the emerging markets, United States Government can hardly be blamed for China to allow the Yuan to the dollar.