Central Banking

PBOC denies reports on currency

The People's Bank of China warned on Tuesday 26 July that it has no plans to allow sharp increases in the yuan's value, saying a 2 per cent increase last week was part of an exchange-rate reform and not an initial step to more increases.

The bank denied what it described as mistaken news reports that the move to break the currency's peg to the dollar last week could lead to a stronger yuan.

"Gradualism is one of the important principles in the yuan exchange rate mechanism reform," said a statem