China Looks to Make Yuan More Responsive to Market Changes

The State Administration of Foreign Exchange has reported that China will move forward with reforms to make the yuan more responsive to market forces.

Key areas of reform will include allowing more firms to trade on the foreign exchange market and develop more products for hedging risk.

On Friday, China had relaxed its capital controls to make it easier for individuals and firms to purchase foreign currencies and invest abroad.

The central bank purchases dollars to ensure the yuan does not rise too quickly. China holds the world's largest foreign exchange reserves, approximately $875.1 billion at the end of March.