Yuan moves up under new rule
Beijing, July 25:
The yuan rose twohundredths of a per cent on China’s small, tightly controlled currency exchange on Monday, as a central bank official was quoted as saying China’s decision to sever it currency’s peg to the US dollar won’t solve trade imbalances overnight but will buy time for industry reforms. Yu Yongding, a member of the central bank’s Monetary Policy Committee, also said pressures for the Chinese yuan to strengthen would continue to grow even after the move last week to let its value rise by two per cent, according to a government newspaper. China on Thursday revalued the yuan at 8.11 to the US dollar and introduced a bit more flexibility in its trading scheme after a decade of fixing its rate at 8.277 to the dollar. The new system allows the yuan to move up to 0.3 per cent higher or lower than the previous
day’s close. The yuan was trading on Monday afternoon at 8.1097 to the US dollar, two hundredths of a per cent above its Friday closing price of 8.1111. The Chinese government has tried to emphasize the yuan’s stability under the new system.