On 11th December, for the first time, China Foreign Exchange Trade System introduced the CFETS index, this is another big thing after the inclusion of RMB into SDR.

ANBOUND'S scholars are of the view the introduction of CFETS index does not necessarily mean China intends to immediately de-peg RMB from the USD but rather the short term goal is to allow the market to make a comprehensive evaluation on RMB exchange rate.

The de-pegging of RMB from USD could be a long progress and this progress has just been ignited.