This includes the widening of the RMB’s daily trading band against the US dollar from half per cent to one per cent above and below the reference rate in mid April 2012. This was motivated by the growing ability of the domestic participants to manage exchange rate movements and reflected the desire to accommodate greater flexibility in the exchange rate in the future.
The PBOC has entered into a series of bilateral currency swap agreements whereby the PBOC and other central banks (over 20 in number) have agreed to exchange the RMB with the respective counterparty currencies. 15.