Thursday saw the value of the Chinese yuan notch its largest gain thus far in 2012 against the world's reserve currency as a consequence of the People's Bank of China stating it is moving to encourage economic development and growth, Bloomberg reports.
The Asian nation, host of the globe's second-largest economic system that as of late has shown some tendencies to slow down, said it is widening funding at financial institutions such as the Agricultural Bank of China. Three-hundred seventy-nine additional branches of that bank will see the government reduce reserve-requirement ratios.
"The view for modest appreciation in the yuan still remains," currency strategist Irene Cheung with Australia & New Zealand Banking Group in Singapore. "In the near term, we are looking at the potential widening of the yuan trading band."
Expansion of China's economy, which trails only that of the U.S. as far as size is concerned, has been tempered by slowing of the real estate market and export demand.
Concerns are gaining momentum about the reduced pace of China's economy, the outlook and capital outflows, according to Dow Jones Newswires. The yuan this week has been trading at weaker levels as the country prepares to confront prospects of an economic hard landing.
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