Businesses should get ready for more volatility in the Chinese yuan, regulator says

Businesses should get ready for more volatility in the Chinese yuan, regulator says

BEIJING — China's foreign exchange regulator told businesses Friday to prepare for more volatility in the yuan.The Chinese currency, also known as the renminbi, strengthened roughly 1% this week against the U.S. dollar to levels not seen since July 2018. Less than five months ago, the yuan was at its weakest against the greenback since early 2008. Although that is based on a midpoint set by the central bank, the People's Bank of China, Beijing has been allowing markets to play a greater role in the exchange rate.One-year implied volatility of the yuan has climbed to 5%, versus less than 2% for previous years, indicating a basis of "increased flexibility" in the exchange rate, State Administration of Foreign Exchange spokeswoman Wang Chunying told reporters on Friday."In face of exchange rate fluctuations,