China will improve yuan flexibility, c.bank governor says

Credit: REUTERS/Thomas White

China will seek to improve the flexibility of its yuan currency and will reduce restrictions on cross-border use of the yuan, the country's central bank governor Yi Gang said on Saturday.

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SHANGHAI, Oct 24 (Reuters) - China will seek to improve the flexibility of its yuan currency and will reduce restrictions on cross-border use of the yuan, the country's central bank governor Yi Gang said on Saturday.

Yi said such moves were needed to promote the opening of the country's financial services industry. He was speaking at the Bund Summit conference held in Shanghai.

China will "improve flexibility of the yuan, and let exchange rates play a better role as an automatic stabilizer in the macro economy and international balance of payments," he said.

To promote yuan internationalization, China will further improve the infrastructure for cross-border use of the yuan, he said.

China plans to expand several outbound investment schemes to meet onshore investors' need to allocate assets globally, state news agency Xinhua said on Wednesday, following a steady strengthening in the yuan against the dollar.

(Reporting by Samuel Shen and Brenda Goh; Editing by Tom Hogue)

((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))

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