China heading for free market
NEWS
The Peoples' Bank of China (PBoC) widened the band within which the yuan can trade against non-dollar currencies to 3% – double the previous 1.5% band. This reduces the amount of daily re-alignment the PBoC is required to perform to manage its currency basket, according to Adam Myers, FX strategist at UBS in London.
He said: "Logically, given the yuan's directional strength, the move reduces the amount of euro, yen and HK dollar buying needed on a daily basis to maintain basket weightings." No
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