China’s central bank is making all the right noises when it comes to moving towards opening up its domestic currency, but analysts warn that any concrete action is still a long way off. On Tuesday after China’s central bank reiterated its plan to gradually stop intervening in its foreign exchange market, the dollar index, which trades against other major currencies, slipped 0.3 percent.
“One thing that we have to remember, we had a huge raft of reforms announced as part of the third plenum, but none of it is really happening today, tomorrow or indeed next week,” said Robert Rennie, global head of FX strategy at Westpac Bank.
The comments were made by Zhou Xiaochuan, head of the People’s Bank of China, in a guidebook explaining reforms outlined last week following a Communist Party meeting, but Rennie told CNBC they did not necessarily translate into hopes for immediate action.
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