The Chinese yuan dropped in value against the U.S. dollar on Wednesday after the People's Bank of China widened the monetary unit's trade range, according to published reports.
Bloomberg reports March saw investment reduce 6.1 percent as compared to the same month last year, amounting to the equivalent of $11.8 billion, the commerce ministry indicated. The fall was 0.9 percent during the month prior. The Asian nation also saw foreign direct investment reduce for a fifth straight month.
"The wider band lays the groundwork for a more market-driven and volatile exchange rate regime somewhere down the road," chief Asia economist Mark Williams with Capital Economics in London told The Los Angeles Times. "Second, it signals that the policymaking process in Beijing continues to function, contrary to some suggestions that infighting ahead of the leadership hand-over was resulting in policy paralysis."
Development and growth in China will increase to a rate of 8.2 percent this year, according to projections issued by the International Monetary Fund. That represents a gain from the original forecast of 8.1 percent.
China aspires to internationalize its currency and make it a reserve currency so that it may decrease reliance on trading with the U.S. dollar, according to The Los Angeles Times.
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