China will look to give its currency greater flexibility – RBC CM

Huang Yiping, a member of the PBC’s MPC said that China will look to give its currency greater flexibility, expand its free floating range, and reduce intervention in the foreign exchange markets, notes the analysis team at RBC Capital Markets.

Key Quotes

“The comments echo the recent front page op-ed in the Financial News, owned by the PBC, and comments from Wang Yu, Deputy Head of the PBC’s Research Bureau, in mid-June. Increasing noise around exchange rate flexibility comes ahead of the 19th Party Congress later this year and the first round of USChina Comprehensive Economic Dialogue (CED), which will be held in Washington on 19 July.”