China has reimposed stability on the yuan – at a price. Almost two months after the central bank shocked global markets with a mini-devaluation of its currency, calm has returned. Yet the promise of letting market forces play a greater role in setting the exchange rate remains distant. Trading in the renminbi in the last few days has made recent volatility seem like a bad dream. On the morning of Oct. 9, the Chinese currency reached its strongest level against the U.S. dollar since the People’s Bank of China shifted policy mid-August. Meanwhile the offshore yuan traded in Hong Kong – which had weakened as investors ... (full story)