“China announced over the weekend that it will allow its currency Yuan to move with market forces, rather than being pegged to a fixed amount against the dollar. If this policy is really implemented, it will create an “emerging market” in Chinese currency. As we discuss in our book, currency markets, like all the other markets, need institutions to work well. Given that for the longest time, Chinese currency was regulated, there are many probably many institutional voids in this market. The creation of a currency market in China will create big opportunities for many private sector intermediaries.”, -Authors, Winning in Emerging Markets.
Do you agree? Looking forward to your comments and experiences in similar situations.