Silverbird
Well-known member
China should keep the yuan fairly stable to anchor expectations about the currency's rate of climb, a prominent economist said in remarks published on Monday, adding to a growing tide of calls for it to rise more slowly.
But a separate government think-tank suggested that Beijing should let the yuan float freely, underscoring divisions in policy circles since the yuan has stabilised around 7 per dollar following several months of quickened appreciation.....
The People's Bank of China intervenes heavily in the currency market, buying most of the dollars flowing into China in order to control the yuan's ascent.
To help tackle inflation, the central bank sought to tamp down prices by permitting the yuan to climb at an annualised rate of about 17 percent in the first quarter.
But with clouds gathering over the export sector, the rise has virtually ground to a halt in April. The yuan marked time on Monday at 7.0028 per dollar, marking a total gain of 18 percent since China depegged the currency from the dollar in July 2005....
http://www.cnbc.com/id/24346027
But a separate government think-tank suggested that Beijing should let the yuan float freely, underscoring divisions in policy circles since the yuan has stabilised around 7 per dollar following several months of quickened appreciation.....
The People's Bank of China intervenes heavily in the currency market, buying most of the dollars flowing into China in order to control the yuan's ascent.
To help tackle inflation, the central bank sought to tamp down prices by permitting the yuan to climb at an annualised rate of about 17 percent in the first quarter.
But with clouds gathering over the export sector, the rise has virtually ground to a halt in April. The yuan marked time on Monday at 7.0028 per dollar, marking a total gain of 18 percent since China depegged the currency from the dollar in July 2005....
http://www.cnbc.com/id/24346027
