According to analysts, the sharp fall of the yuan this week does not show a major change in the foreign exchange rate policy or its long-term currency revaluation in this country. But the chief economist of Bank of Communications Lian Ping said the yuan should not rise too fast because that would hurt exporters, who have already hit by the global financial crisis.
Started on Nov 4, the two-day China-US Strategic Economic Dialogue (SED) Read more…
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Ma Jiantang, who is the National Bureau of Statistics Director, quoted Premier Wen Jiabao’s words “worse than expected” when he expressed the effect of the global financial storm on China on Tuesday.
After the central government announced last Sunday a 4 trillion yuan ($586 billion) stimulus package to boost the economy, it is the first time the personal evaluation of the premier was made public on the situation.
The Read more…
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Today witnessed a dramatic fall of yuan in seven weeks, according to the China Foreign Exchange Trade System. It is the biggest drop since May 27. It is also the first decline in three days after a report today showed China’s economic growth cooled in the second quarter, increasing pressure on authorities to switch from fighting inflation to protect exporters. Before that the central bank had set a weaker daily reference rate, suggesting that it is seeking to boost growth and deter speculators.
Gross domestic product grew 10.1 percent in the second quarter from a year earlier, the slowest since 2005, compared with a 10.6 percent pace of growth in the first three months of the year, the statistics bureau said today in Beijing. China will likely allow the yuan to appreciate more slowly and relax controls on fuel price increases. As reported some export oriented industries has tried to persuade the government to rein in currency gains and increase export-tax rebate.
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According to analysts, the sharp fall of the yuan this week does not show a major change in the foreign exchange rate policy or its long-term currency revaluation in this country. But the chief economist of Bank of Communications Lian Ping said the yuan should not rise too fast because that would hurt exporters, who have already hit by the global financial crisis.