- Decoupling exchange rate from US$, so that the peg reflects the trading mix.
- A baby step -- as I have said before, "cross the river stone by stone" (摸着石头过河)-- to test the water, avoid major mistake by seeing the effect before moving further
- Discouraged speculator -- as 2% is almost the cost for the leveraged speculator who had started a year ago -- speculating by rolling long RMB is not a profitable position
- Less pressure to reval if US$/EUR/JPY rate changed, because it is only the combined weighted average that matter
- May continue to have small steps every other year, provided that impact on export/job is proved to be small
- If speculators are still active, the changes are going to be small and it will be such that no speculator who longed RMB for over a year (rolling long) would profit significantly