We, at FxWirePro, at of the belief that Chinese authority or to say its communist leadership is freaking out over recent crisis faced by economy. While at one hand, they are trying hard to give up control and give market a greater say, their actions on the other hand suggest they are not quite at par with it.
This year, Yuan's devaluation against Dollar has turned focus on weakness of Chinese economy and the authorities are just might getting freaked out with so much spotlight and in the face of market force.
China's vice-president at Davos echoed recent commentaries from other Chinese officials -
"The fluctuations in the currency market are a result of market forces, and the Chinese government has no intention and no policy to devalue its currency"
They just prefer to blame it on FED -
"Fluctuations in the currency market started with the raising of interest rates by the Fed"
Chinese state run media has recently started bashing speculators by means of mocking and warning.
All these tell us, that the authorities might be freaking out and only thing holding it stable for China is its massive $3.33 trillion reserve. More of that disappears, like $513 billion last year, closer we will be end game in Chinese puzzle.
