China is considering widening the trading band of its currency "in the near future", despite recent weak trade, industrial and GDP figures, said Yi Gang, Deputy Governor of the People's Bank of China.
"The exchange rate is going to be more market-oriented," Yi said at an International Monetary Fund conference in Washington yesterday, "Last year, they increased the floating band from 0.5 percent. I think in the near future they're going to increase the floating band even further."
The statement came after the yuan rallied to a 19-year high to close at 6.1723 per dollar in Shanghai, the upper limit of a trading range that spans 1 percent either side of the central bank's daily reference rate.Caijing
China Plans to Expand Yuan Trading Band in "Near Future"
So China wants more imports and a higher standard of living.
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