China’s official position is that, to avoid the negative impact of a stronger RMB on China’s exports and hence employment, appreciation must proceed in an autonomous, gradual, and controllable manner. The current exchange-rate regime, which links the RMB to a basket of currencies, was designed to give the PBC leeway to control the pace of RMB appreciation, while creating two-way fluctuations in the exchange rate against the US dollar in order to discourage speculators from making one-way bets on the RMB.