SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Greater China Stocks
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RealMuLan who wrote (2221)7/21/2005 8:21:30 AM
From: BubbaFred  Read Replies (1) of 8334
 
China Severs Its Currency's Link to Dollar
Thursday July 21, 8:06 am ET
China Severs Its Currency's Peg to the U.S. Dollar, Will Let It Float Instead

BEIJING (AP) -- China said Thursday it will no longer peg its currency to the U.S. dollar but instead let it float in a tight band against a basket of foreign currencies.
The yuan currency has been strengthened, effective immediately, to a rate of 8.11 to the U.S. dollar -- compared to the 8.28 it has been set at for more than a decade. The new trading regime will begin Friday, the government said in an announcement on state television.

China's decade-long policy of fixing the yuan to the dollar had drawn fire from Washington, which had accused Beijing of keeping the yuan artificially weak to boost the competitiveness of Chinese exports.

Some U.S. lawmakers had threatened tariffs if China didn't adjust its yuan trading scheme.

The yuan will now be allowed to trade in a tight 0.3 percent band against a basket of foreign currencies, the government said. It didn't say which currencies.

It said the central bank would announce the yuan's closing price each day, and that rate would be the midpoint of the next day's trading band.

The announcement was a surprise and came on the government's main evening newscast.

Chinese leaders have been saying for years that any adjustment to China's currency policy would be based on domestic economic needs and not foreign pressure.

China had resisted changes, saying its fragile banking system wasn't ready to let its currency float freely.

biz.yahoo.com

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News