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What's behind the RMB devaluation fears again?

It's not the policy shift, but lack of policy communication by the PBOC that is causing volatility.

China's plan to expand its value-added tax (VAT) reforms will let industries that enter the scheme this year pay 560 billion yuan (US$85.1 billion) less in tax than they did in 2015, the National Bureau of Statistics said on Tuesday.

ON Jan 7, the PBOC set the USD-CNY fixing 0.5 per cent weaker than the previous day, the biggest decline since the Aug 11, 2015 move when the PBOC changed the calculation mechanism for the fixing. This set off another round of renminbi (RMB) devaluation fears, triggering a second sell-off of A-...