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5.21.2007

CHINA BOOST YUAN's FLEXIBILITY

Are Chinese officials reading my blog? Hehehe..! Just daydreaming.

Anyway, as an update to my previous post, the Chinese monetary officials have agreed to let the Yuan's value rise or fall by as much as 0.5%. The previous limit was 0.3%. The move was way below what this site advocates. However, it cannot be denied that it is a positive move towards lesser intervention. Let's hope that China increases the allowable limit soon. It will surely be good for everybody.
"China's central bank said Friday that it will widen the yuan's daily trading band against the dollar to 0.5 percent, just days ahead of a key meeting with the United States to discuss trade issues such as the value of China's currency.

The People's Bank of China also said on its Web site that it will raise both deposit and lending rates, as well as the proportion of deposits that banks must hold in reserve.

--CNN.com"

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