Tourists enjoy a banquet held along the edge of a cliff, at Laojun Mountain in Henan province, China. Amid the US trade war, China’s central bank has had to tread a careful path on monetary policy. Photo: AFP Tourists enjoy a banquet held along the edge of a cliff, at Laojun Mountain in Henan province, China. Amid the US trade war, China’s central bank has had to tread a careful path on monetary policy. Photo: AFP
Tourists enjoy a banquet held along the edge of a cliff, at Laojun Mountain in Henan province, China. Amid the US trade war, China’s central bank has had to tread a careful path on monetary policy. Photo: AFP
Paola Subacchi
Opinion

Opinion

Paola Subacchi

Why China’s central bank is caught between a rock and hard place unless it allows the renminbi to float freely

Paola Subacchi says the complexity of dealing with the devaluation of the renminbi amid the trade war underlines the need for China to allow the value of its currency to be truly determined by market forces

Tourists enjoy a banquet held along the edge of a cliff, at Laojun Mountain in Henan province, China. Amid the US trade war, China’s central bank has had to tread a careful path on monetary policy. Photo: AFP Tourists enjoy a banquet held along the edge of a cliff, at Laojun Mountain in Henan province, China. Amid the US trade war, China’s central bank has had to tread a careful path on monetary policy. Photo: AFP
Tourists enjoy a banquet held along the edge of a cliff, at Laojun Mountain in Henan province, China. Amid the US trade war, China’s central bank has had to tread a careful path on monetary policy. Photo: AFP
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Paola Subacchi

Paola Subacchi

Paola Subacchi is a senior fellow at Chatham House and the author of The People’s Money: How China Is Building a Global Currency.