BOC acts to curb RMB speculative buying
The move widened the spread between buying and selling Hong Kong dollars for the yuan from 0.10% to 0.75%.
It is thought the change was a result of Hong Kong's position as a fertile ground for speculative renminbi buying against the USD-pegged Hong Kong dollar taking advantage of its appreciation.
In addition, mainland banks offer higher interest rates than Hong Kong, prompting Hong Kong residents to convert the local currency for renminbi to deposit in China, said analysts.
China has expressed
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