China’s surprise devaluation of its currency has set up a classic standoff between the country’s central bank and foreign-exchange traders.
While there is no doubt that Beijing will win the fight, the way the battle plays out will say a lot about Beijing’s commitment to reform of its financial system.
When China’s central bank devalued its currency by 1.9% against the dollar on Tuesday, traders quickly bet Beijing would allow…
Anjani Trivedi | WSJ