China c.banker says to liberalise rates, widen yuan band-paper
SHANGHAI Dec 9 (Reuters) - Chinese regulators reaffirmed commitments to widen the yuan's trading band at the appropriate time, the official China Securities Journal reported on Monday, citing deputy central bank governor Pan Gongsheng.
The People's Bank of China (PBOC) will also introduce more types of investors and products into the foreign exchange market, and gradually set up a mechanism for market forces to set interest rates, the paper said.
Pan was quoted saying the PBOC would gradually deregulate capital markets, aiming to eventually manage capital flows using a "negative list" system, and scrap the current quotas system for both inbound and outbound investors when time is ripe.
Forex traders and analysts have been waiting for China to widen the yuan's trading band from the current range of 1 percent either side of the official daily midpoint rate.
However, a steady rally in the yuan appears to have dissuaded regulators from doing so just now.
On Sunday, the central bank released guidelines for financial institutions issuing interbank certificates of deposit, the latest step in its plans to let market forces determine interest rates. (Reporting by Samuel Shen and Pete Sweeney; Editing by John Mair)
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