A widening of the Chinese yuan’s trading band could be imminent judging by the latest comments from the country’s central bank, but analysts add one important caveat: don’t expect any change to bring a significant strengthening of the currency.
The yuan’s trading band against the U.S. dollar will be widened “in the near future,” Yi Gang, deputy governor at China’s central bank,the People’s Bank of China, said at a meeting of the International Monetary Fund (IMF) in Washington on Wednesday, according to media reports.
“There’s no smoke without fire, so maybe we can expect an announcement on the yuan in conjunction with the meetings,” said Ray Attrill, co-head of foreign-exchange strategy at National Australia Bank in Sydney, referring to meetings of Group of 20 nations taking place in Washington this week.
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