Governor's view helps yuan to hit upper end of limit

THE yuan reached the upper end of its trading limit again yesterday after China's central bank said it would work toward a fully convertible yuan.

The Chinese currency rose 0.02 percent to close at 6.2345 per dollar in Shanghai yesterday, according to the China Foreign Exchange Trade System. The rate marked a maximum 1 percent gain from the central parity rate the yuan is allowed to reach during spot trading.

The People's Bank of China yesterday set the reference rate 0.05 percent weaker from Friday to 6.2975 per dollar. The yuan has been traded at the strong end of the trading band for 14 of the recent 15 trading days.

The People's Bank of China Governor Zhou Xiaochuan said on Saturday that full convertibility of the yuan will be the next step in the overhaul of the exchange-rate system.

In Hong Kong's offshore market, the yuan rose 0.11 percent to 6.2346 per dollar, data compiled by Bloomberg News showed. Twelve-month non-deliverable forwards gained 0.12 percent to 6.3398, a 1.7-percent discount to the onshore spot rate.

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