China will begin trading the yuan CNY=CFXS against the Malaysian ringgit MYR= from Thursday, the China Foreign Exchange Trading System (CFETS) said on Wednesday.
The People's Bank of China, the central bank, will start publishing the yuan's mid-point against the ringgit each trading day, as it does for other currencies against which the yuan is traded, CFETS said in a statement on its website.
The yuan-ringgit rates will be set according to dealers' bids, CFETS said, and not according to dollar cross-rates. The yuan will be allowed to rise or fall 5 percent against the ringgit each day from the mid-point, a wider margin than for other currencies.
(Reporting by Soo Ai Peng and Victoria Bi; Writing by Jason Subler; Editing by John Stonestreet)