VOL NO REGD NO DA 1589

Thursday, April 27, 2006

HEADLINE

POLITICS & POLICIES

METRO & COUNTRY

VIEWS & REVIEWS

EDITORIAL

LETTER TO EDITOR

COMPANIES & FINANCE

BUSINESS & FINANCE

LEISURE & ENTERTAINMENT

MARKET & COMMODITIES

SPORTS

WORLD

 

FE Specials

FE Education

Urban Property

Monthly Roundup

FE IT

Saturday Feature

Asia/South Asia

 

Feature

13th SAARC SUMMIT DHAKA-2005

WOMEN & ECONOMY

57th Republic Day of India

US TRADE SHOW

 

 

 

Archive

Site Search

 

HOME

BUSINESS & FINANCE
 
China will stay the gradualist course in forex reform
4/27/2006
 

          BEIJING, Apr 26 (AFP): China will not agree to any major yuan revaluation in the short-term, preferring its gradualist policy despite G7 calls led by the United States for more radical forex reform, analysts say.
"It looks like China's reaction in the short-term is imperceptible," Stephen Green, a Shanghai-based economist for Standard and Charter, told the news agency.
"There has been basically no movement in the yuan-dollar rate; in fact it looks like it has moved slightly the other way," he said, noting the Chinese unit has even eased since a Group of Seven Washington meeting at the weekend.
In one of its most forceful statements on China, the G7 industrialised nations urged Beijing to allow greater flexibility in its tightly managed exchange rate regime.
"In emerging Asia, particularly China, greater flexibility in exchange rates is critical to allow necessary appreciations," as part of a wider effort to resolve outstanding global imbalances, a G7 statement said.
The G7 call came after Chinese President Hu Jintao deflected US pressures to allow the yuan to appreciate during last week's visit to Washington, while saying China would gradually establish a more flexible exchange rate system.
The United States, which chalked up a 202 billion dollar trade deficit with China last year, has cited the yuan exchange rate as a key reason, saying the currency is undervalued by up to 40 per cent.
Green said China was unlikely to buckle under the growing pressure, sticking with its measured approach which would see the yuan rise in value to no more than 7.80 yuan to the dollar by December. It currently trades around 8.02.

 

 
  More Headline
Pak growth remains robust despite rise in oil prices, earthquake
China will stay the gradualist course in forex reform
India rejects US proposal on farmers of developing countries
Spectre of failure haunts WTO talks
India planning to develop SEIRs
Australian HC visits Mostafa Industrial Complex in Ctg
Slowdown in S'pore growth momentum temporary: MAS
Business snippets
 

Print this page | Mail this page | Save this page | Make this page my home page

About us  |  Contact us  |  Editor's panel  |  Career opportunity | Web Mail

 

 

 

 

Copy right @ financialexpress.com