PBOC Said to Mull Policy Options to Address Capital Shifts

China’s central bank is preparing potential measures to help address the risk of volatility in capital flows into and out of the nation in the coming months, according to people familiar with the matter.

Two options under consideration are widening the band in which China’s currency, the yuan, is allowed to fluctuate and guiding the exchange rate gradually lower by adjusting the fixing against the greenback, according to the people, who asked not to be named as the discussions are private. The yuan is now subject to a maximum 2 percent divergence on either side of a daily reference rate set by the People’s Bank of China.