The PRC’s Premier Li Keqiang and its People’s Bank of China Governor Zhou Xiaochuan had some words about this at last weekend’s G-20 conference.
China emerged from the weekend Group of 20 meeting with a new measure of trust from major trading partners that it won’t significantly devalue the yuan.
Zhou was quite explicit.
There is no basis for persistent [yuan] depreciation from the perspective of economic fundamentals[.]
What this means, too, is that from within its centrally managed economy, the government is defining “economic fundamentals,” and so the government also has no intention of allowing the currency to float; it’ll continue to manage that value for government purposes in every respect.