Chinese RMB scores new high against U.S. dollar

As ministers and high-ranking officials gathered for the China-US Strategic Economic Dialogue discussions in Washington beginning Tuesday, the Renminbi (RMB), the Chinese currency, reached a new high of 7.65 for one US dollar.

The Chinese currency has appreciated by 5.94 percent againstthe American currency in less than two years, according to sources with the China Foreign Exchange Trading System.

The RMB also appreciated slightly against four other major currencies -- the euro, the Japanese yen, the Hong Kong dollar and the British pound.

China began reforming the exchange rate mechanism in July 2005.

Its currency has continued to climb against the U.S. dollar this year.

On January 4, 2006, China's interbank market ushered in a market maker system and OTC (over-the-counter) system for foreign exchange swaps to improve the market fluidity and flexibility of the foreign exchange rate.

Over the past two years, the Renminbi has floated in a narrow range.

The second round of the China-US Strategic Economic Dialogue is being held Tuesday and Wednesday in Washington. The high-level Chinese delegation is led by Vice Premier Wu Yi.

Topics to be discussed at the meeting include the Chinese currency exchange rate, services, investment and transparency, energy and environment, balanced growth and innovation.

Source:Xinhua