Will the Chinese government stand firm on the RMB peg?

China remains a key market but we need to consider how the Chinese government is managing the currency with regards to the large inflows of foreign capital (in other words, revaluation). Also, we need to look at what the considerations are before the Renminbi (RMB) becomes fully commercialised. China's market is open for current account transactions involving trade in goods and services but the capital account is basically closed, save for FDI and a small range of borrowing, lending and asset transactions. This helps protect China from so-called 'hot money' flows. The government has st...