The currency slid as much as 0.9 percent on Feb. 28, the largest decline since China unified official and market exchange rates in 1994, according to data compiled by Bloomberg. The yuan lost 1.3 percent in February, the biggest monthly drop on record, fueled by speculation the central bank will widen the currency’s trading band against the dollar to allow greater volatility at a time when economic growth is slowing.
The yuan’s fall, along with the recent drop in interbank interest rates and bond yields, “should be overall positive for growth,” even though the declines are more related to the central bank’s financial reform efforts.
Premier Li will present his first annual work report to the National People’s Congress in Beijing on March 5, outlining the government’s plans for the economy after the ruling Communist Party set out its blueprint for reform at a summit in November. He will also announce a target for this year’s increase in gross domestic product.
The yuan’s fall, along with the recent drop in interbank interest rates and bond yields, “should be overall positive for growth,” even though the declines are more related to the central bank’s financial reform efforts.
Premier Li will present his first annual work report to the National People’s Congress in Beijing on March 5, outlining the government’s plans for the economy after the ruling Communist Party set out its blueprint for reform at a summit in November. He will also announce a target for this year’s increase in gross domestic product.