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China Widening Yuan Band Shows Confidence in Economy

China’s doubling of the yuan trading band signals official confidence in the strength of the economy’s expansion and suggests policymaking is unimpeded by the ouster of Bo Xilai from the Communist Party leadership.

The change that takes effect today “adds to my confidence in a soft landing,” said Jim O’Neill, who is chairman of Goldman Sachs Asset Management in London and coined the acronym BRIC for Brazil, Russia, India and China.