Easing Controls: China to widen yuan trading band
Yuan is currently allowed to trade 0.5% on either side of a midpoint price set by the central bank every trading day.
BEIJING:
China’s central bank said Saturday it would widen the yuan’s trading band against the dollar, loosening currency controls in a major step towards adopting more market-oriented reforms. The yuan is currently allowed to trade 0.5% on either side of a midpoint price set by the central bank every trading day. The new rules will come into effect on Monday and allow the currency to fluctuate by up to 1.0% either side, the bank said in a statement. Beijing’s trading partners have long criticised its yuan exchange rate, saying it is kept artificially low, fuelling a flow of cheap exports that have helped trigger huge trade deficits between some countries and China.
Published in The Express Tribune, April 15th, 2012.
China’s central bank said Saturday it would widen the yuan’s trading band against the dollar, loosening currency controls in a major step towards adopting more market-oriented reforms. The yuan is currently allowed to trade 0.5% on either side of a midpoint price set by the central bank every trading day. The new rules will come into effect on Monday and allow the currency to fluctuate by up to 1.0% either side, the bank said in a statement. Beijing’s trading partners have long criticised its yuan exchange rate, saying it is kept artificially low, fuelling a flow of cheap exports that have helped trigger huge trade deficits between some countries and China.
Published in The Express Tribune, April 15th, 2012.