China Said to Weigh New Role for PBOC

The transcript discusses the debate over concentrating regulatory power in the People's Bank of China (PBOC) versus maintaining individual sector regulators. It highlights issues with shadow banking and regulatory arbitrage in China, where financial products shift between sectors to avoid regulation. The PBOC's role in currency management is also covered, including their commitment to liberalizing the currency and expanding trading bands to prevent market volatility.

In what ways might the expansion of the trading band affect the currency market according to the discussion?

What is the long-term commitment of the PBOC regarding currency liberalization?