News & Reports News Year 2013 April 2013 Yuan band widening in the works

Yuan band widening in the works

CHINA may widen the yuan's trading band in the next three days after the Chinese central bank hinted that it will further loose control over the currency during the Group of 20 nations meeting in the United States, Swiss bank UBS AG said.

"Signs are pretty clear that the People's Bank of China is preparing a band widening very soon," UBS analysts Manik Narain and Geoffrey Yu said in a report. "As for timing, there is a risk that it happens over the course of the next 72 hours."

Yi Gang, deputy governor of the PBOC and head of the State Administration of Foreign Exchange, said on Wednesday in Washington: "In the near future, we are going to increase the floating band even further."

The PBOC widened yuan's trading band from 0.5 percent to 1 percent in April last year - the first time since 2007.

The currency has traded close to the 1 percent cap of the official rate for most of the time in the past six months.