Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Forex - China widens yuan trading band to 2% at weekend

Published 03/16/2014, 06:16 PM
Updated 03/16/2014, 06:18 PM

Investing.com - China widened the range in which the yuan can fluctuate against the U.S. dollar at the weekend, signalling it could accept more volatility for the exchange rate and challenge the perception that the currency is a one-way bet.

The People's Bank of China said Saturday the yuan will be allowed to move 2% either side of the central parity against the dollar starting from Monday, doubling the previous 1% range.

China has pledged to make the yuan more flexible since 2005 when the currency was originally unshackled from its dollar peg and the country has a longer-term aim for a fully convertible yuan that was enshrined by the Communist Party at a meeting last November.

The government is committed to gradually dismantling China's capital account regime, but foreign exchange reserves are expected to rise sharply again this year, from $3.8 trillion to well over $4 trillion.

The weekend move was the third since July 2005 and follows a widening from 0.5% in April 2012.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.