ECB study warns on renminbi peg

China's currency regime, which pegs the renminbi to the dollar, risks damaging its economy and poses long-term risks to financial stability, according to a research paper published by the European Central Bank.

ECB: The sustainability of China’s exchange rate policy and capital account liberalisation (Occasional Paper No. 82), by Lorenzo Cappiello and Gianluigi Ferrucci) http://www.ecb.int/pub/pdf/scpops/ecbocp82.pdf

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