BIZCHINA / News
Yuan likely to rise 4% this year
(Xinhua)
Updated: 2007-04-05 15:32
The value of yuan, China's currency, may show an appreciation of about
four percent for the whole year, the China Securities Journal reported on
Wednesday, citing analysts.
The yuan appreciated 0.96 percent in the first quarter. If the pace was
maintained, the yuan would end the year by appreciating within the range
of three to five percent, the newspaper reported.
The yuan, or renminbi (RMB), saw a 1.05-percent rise in value since the
beginning of the year when it hit a new high on Tuesday to break the 7.73
mark after fluctuating within the 7.73 to 7.74 range since March 13.
Ye Yaoting, an analyst with the Bank of Communications, said Tuesday's
performance was a natural result of gradual adjustments towards a higher
value of the yuan.
The inflow of foreign funds, attracted by the anticipation of further
appreciation, had pushed the yuan to a new high, said Ye.
Yet the pressure for revaluation from the US, which announced last Friday
the imposition of 10.9 to 20.4 percent penalty tariffs on imports of
Chinese coated paper, may also have helped the yuan to rise, he said.
Zhao Xijun of People's University of China said the strong yuan, though
partly attributed to outside pressure, was fundamentally supported by the
country's economic performance.
Ye and Zhao agreed that the country's trade surplus and the massive
inflow of investment funds were the main forces driving the yuan higher.
The yuan quickly reversed its rise on Wednesday, and opened the day with
its central parity rate at 7.7349 yuan to the US dollar.
(For more biz stories, please visit Industry Updates)
Related Stories
� Yuan hits new high after breaking 7.73 mark
===========================================================================
� Yuan predicted for further gain
===========================================================================
� China unveils record trade surplus
===========================================================================
Learn Chinese, Learn mandarin
No comments:
Post a Comment