Get ready for some turmoil

http://www.ft.com/cms/s/0/6cd3a766-2925-11df-972b-00144feabdc0.html China’s central bank chief laid the groundwork at the weekend for an eventual appreciation of his country’s currency when he described the current dollar peg as a temporary measure. His comments striking a more emollient tone after several months of tough opposition in Beijing to a shift in exchange rate policy will be welcomed in Washington. Zhou Xiaochuan, governor of the People’s Bank of China, gave the strongest hint yet from a senior official that China will abandon the unofficial dollar peg in place since mid-2008 which he said was a “special” policy designed to weather the financial crisis.