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China moved into a managed floating exchange rate system in July 2005. That protocol was based on market supply and demand with reference to a basket of currencies. Here is a brief look at the timeline of the Renminbi's exchange rate reform.
China's central bank ends pegging the yuan to the US dollar, revaluing the yuan by 2.1 percent to 8.11 per US dollar.
It says it will pursue a managed floating exchange rate based on market supply and demand with reference to a basket of currencies. The yuan will be allowed to rise or fall 0.3 percent a day against the dollar from a reference rate set every day by the central bank.
Renminbi's daily trading limit against the dollar widens to plus or minus 0.5 percent.
RMB remains convertible on the current account, but not the capital account. The currency is still not fully convertible as the Chinese government is concerned about the financial system's ability to handle rapid cross-border movements of money.