China received broad international support for its economic policy and changes to its currency peg on Saturday, with finance ministers and central bankers from the world’s leading economies accepting Beijing was managing a difficult economic transition.
The Chinese authorities managed to convince most leading finance ministers and central bankers that is devaluation and new currency management arrangements were a step on the road to a more market-determined exchange rate.
Their success dispelled some official fears that China’s new exchange rate regime, introduced on August 11 and which has sparked global turmoil in financial markets, was a competitive devaluation designed to boost its exports.
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