The PBOC is profiting from defending the CNY peg û but that's no reason to keep it

The debate about the renminbi rages on. But while economists debate the pros and cons of keeping the peg, widening the CNY/USD band or a large, one-off revaluation, little attention has been paid to the financial consequences for the People's Bank of China as it defends the current regime. These are important and our estimates suggest that the current regime is more sustainable than it might at first appear.