PBOC may widen yuan trading range after Party Congress
Limit could be pushed from 2% to 3%, but impact would be limited
As part of efforts to burnish reform credentials, the People’s Bank of China is considering widening the yuan trading band, reports the South China Morning Post, citing sources with knowledge of the matter.
The move wouldn’t come until after the Party Congress this fall, and would be largely cosmetic as tight capital controls and the level at which the yuan starts the trading day would limit any substantive impact.
“A yuan band widening is possible. There could be some internal consensus on this,” one source who advises the government on policy was quoted as saying. “But the impact won’t be big – it may just be a gesture to express the commitment to long-term market reform.”