Free exchange I China gives up the fight.

The article analyzes why policymakers in China are willing to let the Chinese yuan decline against the U.S. dollar. It refers to China's reliance on exchange-rate stability, tighter capital controls without forgoing monetary independence and economic fundamentals as factors to its choice to devaluate the yuan. An overview of the measures imposed by China to stabilize its currency in 2015-16 that included sale of foreign exchange reserves and bank reserve requirement is provided.