China’s policy makers made a move to liberalize the economy by removing floor on lending rates, a measure that was welcomed by market participants. Still, the Chinese yuan was weaker today.
The People Bank of China removed the floor on lending rates that was previously set on 30 percent below the benchmark rate. Such reform should improve the banking system and encourage economic growth. Not everything was positive today though as the Asian nation’s stocks were falling and central bank’s data demonstrated capital outflows from the country last month.
USD/CNY rose from 6.1425 to 6.1452 as of 16:37 GMT today after falling to 6.1364 earlier.
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