China will add 11 new currencies to CFETS RMB Index on 01 January 2017; expands the RMB Index from a basket of 13 currencies to 24 currencies. The CFETS Index is a guidance for market participants to look at Renminbi against a basket of currencies instead of focusing on USDCNY exchange rate only.
Once China published CFETS RMB Index, it becomes clear why they have to devalue Renminbi. 12 currencies named in the index have been devaluing since 2011.
China Foreign Exchange Trade System introduced RMB Index on Friday 11 Dec ’15 . It is a trade-weighted measure of RMB against 13 currencies of major trade partners.