Forex Blog: Currency Trading News & Analysis.

April 8th 2005

China prepares to float the Yuan

China is slowly moving toward revaluation of the Chinese Yuan. The currency, which is currently fixed to the USD and trades within a narrow band, may soon be allowed to fluctuate freely. China’s Central Bank recently approved 7 (foreign) banks as market makers in the new exchange rate system. The banks will be permitted to make the market in a dozen or so of the most popular currency pairs (i.e. USD/Euro, USD/Yen, etc.). Eventually, these banks will be permitted to make the market in Chinese Yuan. Economists and nation-states continue to urge China towards reforming its exchange rate regime, sooner rather than later. The Economist reports:

How much these moves will accelerate currency reform is uncertain. In a recent interview with the People’s Daily, the party mouthpiece, Zhou Xiaochuan, the central bank governor, said that the priority was to improve its exchange-rate mechanism, not simply to revalue.

Read More: China’s Yuan: Softly, softly

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Posted by Adam Kritzer | in Chinese Yuan (RMB) | No Comments »

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© 2004 - 2024 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.