China, the world’s second-largest economy, will open its markets and allow its currency to float within five years, said Charles Li, chief executive officer of Hong Kong Exchanges & Clearing Ltd.
“China has to reform its interest-rate system,” Li said yesterday during a panel discussion at the Futures Industry Association conference in Boca Raton, Florida. The value of the Chinese currency is limited by the government and is only allowed to rise or fall within a narrow range. Li said that system can’t last forever.
Yuan forwards advanced for a seventh day on optimism China will embark on further currency reforms. The yuan traded near a 19-year high against the dollar as central bank Governor Zhou Xiaochuan said yesterday in Beijing that the nation should be on “high alert” over inflation and reiterated gradual reform for the yuan’s convertibility.
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