China has decided to double the yuan's daily trading band to 2 per cent from March 17, the country's central bank has said today.
Chinese banks can exchange the yuan in the foreign exchange spot market at 2 per cent above or below the central parity against the US dollar announced by the China Foreign Exchange Trading System each trading day, according to the statement from the People's Bank of China (PBoC).
The move will meet market demands and further liberalise the Yuan or Renminbi exchange rate, the statement said.
China had raised the yuan's daily trading limit from 0.5 per cent to 1 per cent in 2012.
