However, the reform process was interrupted by the global financial crisis, when we had to narrow the daily floating band of renminbi according to the situation in the post-Lehman Brothers period That said, the renminbi did not depreciate as much as currencies of other emerging market economies did. But the reform never ceased for long. On June 19. 2010 China decided to further promote the market-based exchange rate mechanism reform with reference to a currency basket emphasizing the fundamental role of market supply and demand and the flexibility of the renminbi. On April 16, 2012, China widened the renminbi daily floating band to tl percent from +0.5 percent. Also since 2012, the People's Bank of China has significantly reduced market intervention. Up until now market forces are already playing a dominant role in the formation of the renminbi exchange rate. Chinas exchange rate regime, without doubt, is becoming more and more market oriented Nevertheless, a floating exchange rate regime does not rule out foreign exchange market intervention In some circumstances. intervention is still well justified. For example. when the exchange rate exceeds the predetermined band, or when the capital account experiences large imbalances and there are excessive trades in the foreign exchange market. or the financial market falls into crisis-scale turmoil market intervention can be restarted to the extent that the intervention is in a two-way manner, with the intent of preventing or correcting a large, short-term fluctuation of the exchange rate As a result of more flexible exchange rates- in both nominal and real terms, Chinas current account surplus as a percentage of GDP experienced significant downward adjustment. In 2007 and 2008, Chinas current account surplus-to-GdP ratio peaked but declined rapidly thereafter In5 However, the reform process was interrupted by the global financial crisis, when we had to narrow the daily floating band of renminbi according to the situation in the post–Lehman Brothers period. That said, the renminbi did not depreciate as much as currencies of other emerging market economies did. But the reform never ceased for long. On June 19, 2010, China decided to further promote the market-based exchange rate mechanism reform with reference to a currency basket, emphasizing the fundamental role of market supply and demand and the flexibility of the renminbi. On April 16, 2012, China widened the renminbi daily floating band to ±1 percent from ±0.5 percent. Also since 2012, the People’s Bank of China has significantly reduced market intervention. Up until now, market forces are already playing a dominant role in the formation of the renminbi exchange rate. China’s exchange rate regime, without doubt, is becoming more and more market oriented. Nevertheless, a floating exchange rate regime does not rule out foreign exchange market intervention. In some circumstances, intervention is still well justified. For example, when the exchange rate exceeds the predetermined band, or when the capital account experiences large imbalances and there are excessive trades in the foreign exchange market, or the financial market falls into crisis-scale turmoil, market intervention can be restarted to the extent that the intervention is in a two-way manner, with the intent of preventing or correcting a large, short-term fluctuation of the exchange rate. As a result of more flexible exchange rates— in both nominal and real terms, China’s current account surplus as a percentage of GDP experienced significant downward adjustment. In 2007 and 2008, China’s current account surplus–to-GDP ratio peaked, but declined rapidly thereafter. In