China may expand yuan's trading band if necessary

Updated: 2007-11-19 06:33

CAPE TOWN -- Chinese central bank chief said here on Sunday that China would consider widening its currency yuan's trading band if necessary though it is comfortable with current settings.

Zhou Xiaochuan, governor of the People's Bank of China, told a group of journalists in Cape Town shortly after the conclusion of the G20 meeting that "The floating band is okay for now. If necessary, we can consider to expand that. We're going to gradually enlarge the exchange flexibility."

However, he did not give a timeframe.

But Zhou, who spoke before a later meeting of central bank chiefs, said any move to expand the yuan trading band would depend on global economic conditions and that it would not be the only tool available for Beijing to achieve more flexibility.

Asked if China would increase exchange rate flexibility by necessarily widening the band, Zhou said there were several ways of achieving such an aim.

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