People's Bank of China Governor Zhou
- yuan trading band expansion is not a current focus
- yuan trading band not too important
Onshore yuan (CNY) has a mid-point (the reference rate) set each day by the PBOC. The Bank allow it trade plus or minus 2% from this central rate. From time to time rumours sweep through that the band will be widened to 3%, which would seem to be next step. Zhou tipping a bucket of cold water on that idea.
Still, it won't stop speculation as to widening of the band for long - China has said they want to liberalize financial markets so taking this step (or more) would seem logical.
