With the change-over at the top of the Chinese government last week, further reform of the exchange rate regime is progressing, albeit slowly. Article from weekend Bloomberg:
China’s Next Step on Yuan Is Convertibility, Zhou Says
China’s central bank governor said convertibility will be the next step in the overhaul of the exchange-rate system as calls grow for the nation’s new leadership to deepen changes in the economy to sustain growth.
“For the central bank, I think the next movement related to the yuan is going to be reform of convertibility,” Zhou Xiaochuan said at a conference in Beijing on Nov. 17. “We are going to realize it, we are moving in this direction, we need to go further, we will have some deregulation.”