Chinese strong talk on yuan reform masks policy quandary

China’s central bank has been talking tough on currency reform while it has also intensified market intervention, highlighting the fine line it must walk in trying to liberalise the yuan.

Critics, including the United States, see the intervention as another sign that Beijing is dragging its feet in letting market forces determine the yuan’s exchange rate.

But the wall of money being printed by China’s trading partners under their super-loose monetary policies is flooding emerging markets with speculative cash, which has put the yuan under strong upward pressure this year.

via Business feed http://www.scmp.com/business/economy/article/1224644/chinese-strong-talk-yuan-reform-masks-policy-quandary