FXStreet (Mumbai) - HSBC Global Research, in its latest report noted that the USD-offshore yuan (CNH) and USD-onshore yuan (CNY) basis has widened to a three-month high of over 900 points on the back of USD-CNY fixing raised to its highest level since August 2011. Analysts at HSBC stated, “The yuan has been on a depreciating path since early November, and the pace has accelerated since the start of December — more so in the offshore market than onshore.” People’s Bank of China (PBoC) will adopt a more “hands-off” approach to the yuan following the currency’s inclusion in the International Monetary Fund (IMF) Special Drawing Rights (SDR) basket, it said. “That will be in line with its commitment to full capital account convertibility and a more flexible currency regime over time. In post-SDR press conference in China, PBoC vice governor Yi Gang mentioned an ultimate goal of ‘clean floating’, deviating from past mentions of ‘managed floats’. This signals to us a greater tolerance towards higher foreign-exchange (forex) volatility,” HSBC report noted. For more information, read our latest forex news.