Via Bloomberg, comments from the IMF on the new exchange rate regime from the PBOC:

  • Says China should aim floating rate system in 2-3 years
  • More market-determined rate facilitate SDR operations
  • Announced change has no direct implications for basket
  • New mechanism should allow market forces greater role
  • New mechanism for central parity is a welcome step

-

What's China getting out of all this?

  • A lower currency (WIN!)
  • A tick of approval from the IMF and a step closer to yuan into the SDR basket (WIN!)

Whats not love?