Posted on 04/07/2010 6:41:23 AM PDT by SeekAndFind
China will keep the yuan basically stable while alerting exporters to potential risks to minimize their losses, a powerful central planning agency said in a statement reported on Wednesday.
The National Development and Reform Commission did not elaborate on what such risks might entail, but the wording hinted at China's readiness to resume appreciation after locking the yuan in place since mid-2008 to cushion exporters from the global economic downturn.
In another sign that Beijing might be nearing a consensus about appreciation, the central bank set the the yuan's daily mid-point, its key reference rate, at 6.8259 to the dollar, the highest since May last year, though still well within the tight range of the past 20 months.
"We should keep the yuan basically stable at a balanced and reasonable level, while strengthening analysis and monitoring and making announcements about risks in a timely manner to reduce exporters' risks and losses," the NDRC was quoted as saying by the official China Securities Journal.
The NDRC has a stronger voice than almost any other government agency, including the central bank, in China's decision-making process about the currency.
(Excerpt) Read more at cnbc.com ...
You cannot have free trade with a people who aren’t free.
You cannot have free trade with a people who produce nothing...
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