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Forex Flash: Band widening in CNY coming soon - UBS

FXstreet.com (Barcelona) - Rumours over a possible band widening in the CNY are heating up in the past few days, comment Geoffrey Yu and Manik Narain, strategists at UBS.

They note: "On Wednesday, the Deputy Governor of the People's Bank of China (also head of the State Administration of Foreign Exchange), Yi Gang remarked at the IMF meetings in Washington that band widening will happen 'in the near future'..."

"Our economists note signs are pretty clear that the PBoC is preparing a band widening very soon. As for timing, there is a risk that it happens over the course of the next 72 hours, to coincide with the G20 meetings being held in Washington D.C. and the first anniversary of the previous widening to £1%" UBS strategists add.

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