{"id":134958,"date":"2012-04-14T21:45:27","date_gmt":"2012-04-15T04:45:27","guid":{"rendered":"http:\/\/chinadigitaltimes.net\/?p=134958"},"modified":"2012-04-14T21:45:27","modified_gmt":"2012-04-15T04:45:27","slug":"yuan-gets-more-room-to-float","status":"publish","type":"post","link":"https:\/\/chinadigitaltimes.net\/2012\/04\/yuan-gets-more-room-to-float\/","title":{"rendered":"Yuan Gets More Room to Float"},"content":{"rendered":"
China’s central bank will expand the daily yuan trading band against the dollar.<\/strong>\u00a0<\/a>The announcement came after first quarter economic data that China’s gross domestic product growth had slowed to 8.1%. \u00a0From China Daily:<\/p>\n The\u00a0People’s\u00a0Bank\u00a0of\u00a0China,\u00a0the\u00a0country’s\u00a0central\u00a0bank,\u00a0said\u00a0in\u00a0a\u00a0statement\u00a0published\u00a0on\u00a0its official\u00a0website\u00a0that\u00a0the\u00a0floating\u00a0band\u00a0in\u00a0the\u00a0inter-bank\u00a0spot\u00a0foreign\u00a0exchange\u00a0market\u00a0will\u00a0be enlarged\u00a0from\u00a00.5\u00a0percent\u00a0to\u00a01\u00a0percent\u00a0effective\u00a0April\u00a016.<\/p>\n To\u00a0keep\u00a0the\u00a0exchange\u00a0rate\u00a0stable,\u00a0the\u00a0PBOC\u00a0has\u00a0set\u00a0a\u00a0daily\u00a0reference\u00a0rate\u00a0for\u00a0the\u00a0yuan\u00a0and\u00a0it will\u00a0be\u00a0allowed\u00a0to\u00a0fluctuate\u00a0only\u00a0to\u00a0the\u00a0daily\u00a0limit\u00a0on\u00a0either\u00a0side\u00a0of\u00a0the\u00a0reference\u00a0rate.\u00a0The\u00a0trading range\u00a0was\u00a0widened\u00a0to\u00a00.5\u00a0percent\u00a0from\u00a00.3\u00a0percent\u00a0in\u00a0May\u00a02007.<\/p>\n It\u00a0also\u00a0raised\u00a0the\u00a0spread\u00a0between\u00a0dollar\u00a0selling\u00a0and\u00a0buying\u00a0prices\u00a0offered\u00a0by\u00a0the\u00a0foreign exchange-designated\u00a0banks\u00a0to\u00a0their\u00a0customers\u00a0to\u00a02\u00a0percent\u00a0of\u00a0the\u00a0reference\u00a0rate,\u00a0from\u00a0the current\u00a0level\u00a0of\u00a01\u00a0percent.<\/p><\/blockquote>\n