(Bloomberg) China should relax its control over the yuan as the current focus on keeping the currency stable has limited the scope for possible monetary stimulus, two former officials said this week.Most Read from BloombergUS Inflation Data Was Accidentally Released 30 Minutes EarlySlovak Premier Fighting for Life After Assassination AttemptXi Tells Putin China-Russia Ties Should Last ‘Generations’US Inflation Ebbs for First Time in Six Months in Relief for FedChina Considers Government Buyin
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In an official communique, China’s Politburo said ‘patient capital’ is expected to pitch in as the country moves towards a tech-driven growth model, showing a much-needed focus on the long term, analysts say.
China’s yuan has lost more value against the US dollar as interest rate cuts have yet to materialise, leading exporters to find whatever alternative assets they can until exchange differentials subside.
The People’s Bank of China has indicated its approval for trading treasury bonds on the secondary market, signalling more robust action to boost liquidity and fuel growth is no longer out of the question.