Chinese central bank governor Zhou Xiaochuan has announced a big big chance to China's currency markets. He's announced that China will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading limit.

Zhou wrote in an article that the yuan’s daily range will be widened in an "orderly way" as China seeks to enhance the currency’s two-way flexibility. He said China will phase out investment caps for both domestic and foreign investors. The governor said the country will stick to the general direction of establishing and improving an interest-rate formation mechanism decided by market supply and demand.

Some higher officials in the central bank have also said that a ceiling on deposit rates offered by local banks will be gradually removed as well. Acceleration of the yuan convertibility and liberalization of interest rates were among the key reform proposals decided at the Chinese Communist Party’s key meeting.

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