People's Daily Online -- Yuan's rate against dollar can float within 0.3 percent band, central bank

People's Daily Online -- Yuan's rate against dollar can float within 0.3 percent band, central bank: "Home >> Business
UPDATED: 14:35, July 22, 2005
Yuan's rate against dollar can float within 0.3 percent band, central bank



China's currency, the yuan, will be allowed to float within a 0.3 percent band against the central bank-set central parity of US dollar at the inter-bank market, the People's Bank of China (PBoC) said Friday.
And the yuan's floating range against other currencies will be 1.5 percent starting July 21, the central bank said in a circular.
For clients, the spot rate of US dollar against yuan posted by banks should only be floated within a 0.2 percent range against the central bank-set central parity, compared with a relatively higher 1 percent for the band of cash rate.
The PBoC gave the green light for commercial banks authorized to do foreign currency transactions in provinces and regions at the border areas, including Heilongjiang, Jilin, Liaoning and Xinjiang, to set by themselves the gaps of buying and selling prices for currencies of neighboring countries.
China scrapped the yuan's decade-old peg to US dollar on Thursday, and its yuan is now fixed at a marketbasket of currencies.
Source: Xinhua"