The People’s Bank of China is doubling the daily trading band of the renminbi against the US dollar from today, China Securities Journal reported. The Chinese currency will be allowed to fluctuate 2 percent from the central parity rate, up from 1 percent previously. The decision is part of efforts to increasingly open the renminbi exchange rate to market forces, the report said. It is expected to stem the flow of hot money, Lu Zhengwei, chief economist of Industrial Bank, was quoted as saying. The currency may strengthen this year, the report said.
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