China's regulator says yuan is near equilibrium level

BEIJING Fri May 9, 2014 5:24am EDT

BEIJING May 9 (Reuters) - The yuan is moving closer to its equilibrium level, China's foreign exchange regulator said on Friday as it forecast more volatility in the country's capital flows.

In its annual report, the State Administration of Foreign Exchange also promised to relax currency controls over the yuan by increasing the yuan's convertibility in the country's capital account.

The regulator's latest remarks on the yuan's value are in line with the Chinese government's long-standing view that the currency is near its fair value. (Reporting by Koh Gui Qing; Editing by Richard Borsuk)

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