Analysts: Yuan to appreciate 4% in
2007
Home >> Analysts: Yuan to appreciate 4%
in 2007
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.
Renminbi rose to 7.73 per U.S. dollar on Mar
29, 2007, a new record high. The RMB has appreciated by 4.91%
since China introduced exchange rate reform on July 21, 2005.
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 U.S., 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 U.S.
dollar.
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