ANZ’s Liu Li-Gang Says Yuan Band Widening Adds to RMB Volatility
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Liu Li-Gang, chief Greater China economist at Australia & New Zealand Banking Group Ltd. in Hong Kong, comments on the widening of the yuan’s trading band by the People’s Bank of China:
"This move is consistent with its recent measures to fast open China’s capital account. As China experiences two-way capital flows, the renminbi’s volatility will naturally increase. Allowing a flexible exchange rate will enhance PBOC’s monetary policy independence and make its policy more effective.