China's new exchange rate regime represents a clear departure from its previous fixed peg to the US dollar.

In future the People's Bank of China will set the value of the renminbi against a basket of currencies rather than the dollar; the value of the renminbi was immediately revalued by 2.1 per cent; and the central bank will adjust the exchange rate peg in future as a "managed float" with changes "when necessary according to market developments as well as the economic and financial situation".