Financial Times FT.com

China widens renminbi band and lifts rates

By Mure Dickie in Beijing and Geoff Dyer in Shanghai

Published: May 18 2007 12:09 | Last updated: May 18 2007 18:09

China on Friday announced a widening of the renminbi’s daily trading band against the dollar, just days before Beijing ministers head for the US for a meeting at which their management of the allegedly undervalued currency will be a focus of discussion.

The central bank also raised both interest rates and bank reserve requirements, the latest in a series of moves intended to tame liquidity growth and cool soaring domestic share prices.

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