Date
20 October 2017

China to basically end forex intervention, Bloomberg reports

China will “basically” stop normal intervention in the foreign exchange market, Bloomberg News reported on Tuesday, citing the People’s Bank of China (PBoC) governor Zhou Xiaochuan {周小川}, who did not give a timeframe.

To enhance the renminbi’s two-way flexibility, the country will widen the currency’s trading band in an “orderly” way, Zhou said in a book elaborating on the nation’s financial reforms during the four-day third plenary session of the Communist Party’s 18th central committee that ended on Nov. 12.

It will continue to increase the quotas under the Qualified Domestic Institutional Investor (QDII) and Qualified Foreign Institutional Investor (QFII) programs and will eventually remove the quotas, Zhou said.

The cap on deposit rates will also be gradually removed, PBoC deputy governor Yi Gang {易綱} wrote in the book.

– Contact HKEJ at [email protected]

JP/CG

 

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