The Yuan Weakens the Dollar
June 21 Bloomberg News for Swap Free Forex
The Chinese central bank made its announcement at 7 p.m. Beijing time on June 19 in a posting on its website, a week before leaders from the Group of 20 meet in Toronto.
President Barack Obama called China’s decision a “constructive step.” Other lawmakers in the world’s largest economy said China’s move was insufficient.
The Chinese central bank said in a follow-up statement that a more flexible currency will “direct resources to domestic- demand driven sectors such as services” and help curb an excessive reliance on exports, signaling it anticipates the currency will rise.
Managed Float
Authorities will resume a managed float of the yuan against a basket of currencies, according to the June 19 statement. Before the exchange rate was frozen in July 2008, Premier Wen Jiabao’s government had allowed a 21 percent advance versus the dollar over three years.
Posted by Swap Free Forex
The Chinese central bank made its announcement at 7 p.m. Beijing time on June 19 in a posting on its website, a week before leaders from the Group of 20 meet in Toronto.
President Barack Obama called China’s decision a “constructive step.” Other lawmakers in the world’s largest economy said China’s move was insufficient.
The Chinese central bank said in a follow-up statement that a more flexible currency will “direct resources to domestic- demand driven sectors such as services” and help curb an excessive reliance on exports, signaling it anticipates the currency will rise.
Managed Float
Authorities will resume a managed float of the yuan against a basket of currencies, according to the June 19 statement. Before the exchange rate was frozen in July 2008, Premier Wen Jiabao’s government had allowed a 21 percent advance versus the dollar over three years.
Posted by Swap Free Forex
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