Li Wei, a Shanghai-based economist at Standard Chartered Plc. comments on the widening of the yuan’s trading band by the People’s Bank of China.
“The move is expected and there should be less yuan appreciation, but more volatility going forward.
‘‘The macroeconomic case for new yuan gains has weakened given the narrowing of China’s external surpluses, subdued inflationary pressures and clouds over China’s export prospects.
‘‘It also seems likely that the yuan valuation issue has slipped down the international policy agenda given China’s status as a potential provider of new financing for the International Monetary Fund and Europe.
‘‘Chinese officials have signaled that they see the yuan’s current valuation as approaching equilibrium and plan to give market forces a bigger role.’’