Breaking News

LVMH to Distribute Hermès Stock to Its Shareholders
Tweet TWEET

UBS’s Wang Tao Says Yuan Band Widening ‘Largely Expected’

Wang Tao, an economist with UBS AG in Hong Kong, comments on the widening of the yuan’s trading band by the People’s Bank of China.

“This is largely expected” and a good time to increase the currency’s flexibility, Wang said, citing a reduction in China’s current account balance and balanced market expectations on the yuan with “no large speculative bets one way or the other.”

“Expect increased two way volatility” in yuan trading this year, Wang said. The central bank acted to increase exchange rate flexibility, he said. “Over time that should give monetary policy more independence. For the short term, there is not much impact.”

To contact the Bloomberg News staff on this story: Zheng Lifei in Beijing at lzheng32@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net

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.