EFTA Document EFTA01459586

15 January 2016 Global Economic Perspectives: China's evolving FX policy We are not sure, though, that this transitional regime of managing the currency with reference to a basket will last for long. It is one thing for a very small very open economy like Singapore to target a certain trajectory for its trade-weighted exchange rate. But having a view on the exchange rate implies some level of constraint on interest rate policy. A rigid peg like that of the HKD implies complete surrender o