China Commerce Ministry Signals Yuan Move Positive In Long Run |
Wall Street Journal - Jun 21, 2010 |
China's Commerce Ministry on Monday indicated Chinese exporters would benefit in the long run from a more flexible exchange rate, as the yuan surged to its highest level against the U.S. dollar in the modern era in its first trading session since country's central bank announced on the weekend that it will increase the currency's flexibility.
The reform of the yuan exchange-rate mechanism will promote the competitiveness of export-oriented enterprises over the long run, even as they face pressures in the short term from an increase in labor and raw material costs, ministry spokesman Yao Jian said, according to the state-run Xinhua News Agency Monday.
At a news conference Monday, the Vice Commerce Minister, Fu Ziying, said China is moving toward more sustainable and stable development, including in its trade and exports.
The comments by the two trade officials were the ministry's first response to the move Saturday by the People's Bank of China to increase the yuan's flexibility, which has been interpreted to mean the PBOC has dropped the effective peg to which it has held the yuan against the dollar since July 2008 amid the global financial crisis.
Read Full Article from Wall Street Journal
- Posted: 2010-06-21 09:46:46
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