Found some easy interpretation for reasons behind the Chinese Move. Apologies in case the source isn't mentioned. • China has made a move to shift to a more market-determined exchange rate after more than four months of stifling moves. • With this, China has obliged the IMF's request to introduce market-oriented reforms on FX. • Until July 2005, China had a decade-old exchange rate peg against the US dollar. However, since July 2005 it allowed the Yuan to fluctuate within a moving band, at least to some degree. • On August 11, 2015, it said the daily opening fixing rate of the Yuan will refer to the previous trading day's closing (rather than asking for quotes before market opens). As an opening move, the central bank of China depreciated the fixing rate by nearly 2% to 6.2298 from 6.1162 against the US$. • Besides making some progress on Capital account liberalization and the FX regime, the recent move is aimed at improving the competitiveness of Chinese exports, after a s