Foreign Exchange News
- Yuan trade band may be widened
Date: 2-Feb-2007 Sources: (Shenzhen Daily)
THE government may take a string of measures this year, including increasing flexibility in the yuan and widening its trade band against the U.S. dollar, to rein in excessive liquidity and reduce the country's trade surplus, the China Securities Journal reported Thursday, citing unnamed sources.
Under current rules, the yuan is limited to fluctuating up or down by 0.3 percent daily against the dollar. The government will likely allow additional foreign investment in the local securities markets and may allow more offshore investment by local banks and insurers to reduce the buildup of its foreign-exchange reserves, which totaled US$1.06 trillion at the end of December.
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