Societe Generale’s Yao Calls Yuan Band Widening ‘Big Gesture’

Yao Wei, a Hong Kong-based economist at Societe Generale SA, comments on the widening of the yuan’s trading band by the People’s Bank of China.

“This is a small step but a big gesture of China’s commitment to liberalize its exchange rate. Recently China has clearly accelerated the pace of capital account openness.

“The change essentially gives more say to the market to determine the path of the yuan. Given the market expectations indicated by the currency forward curves, the yuan will probably continue fluctuating around current levels for some time, but with more volatility.”

To contact the Bloomberg News staff on this story: Zheng Lifei in Beijing at

To contact the editor responsible for this story: Paul Panckhurst at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.