April 20, 2011
Yuan hits record high as China laments imported inflation
SHANGHAI: The yuan hit another record high against the dollar on Wednesday, guided by the People's Bank of China's mid-point fixing at an all-time high, while officials lamented the impact of imported inflation on China.
In the clearest comments so far about worries over surging global commodity prices, the Ministry of Industry and Information Technology said on Wednesday that China faced quickening imported inflation and some firms were suffering great losses from rising prices for raw materials.
PBOC Deputy Governor Hu Xiaolian, in an article published on the central bank's website on Tuesday, said China needed to strengthen the flexibility of the yuan to help ease the pressure of imported inflation, forecasting that commodity prices would continue to rise.
And Xia Bin, an academic adviser to the PBOC, even stated that he could not rule out another one-off revaluation for the currency, although the government has repeatedly said it would not consider another one-off adjustment in the yuan's value after a 2.1percent landmark revaluation in July 2005.
"Officials are now sending the clearest signs so far that the government is using the yuan as one of its main tools to help curb inflation," said a European bank dealer in Shanghai.
"There's is a strong potential for the yuan to appreciate at a faster pace via trading, guided by PBOC daily fixes, but we don't think the government would likely let the yuan revalue."
read more @ http://economictimes.indiatimes.com/markets/forex/yuan-hits-record-high-as-china-laments-imported-inflation/articleshow/8034578.cms
SHANGHAI: The yuan hit another record high against the dollar on Wednesday, guided by the People's Bank of China's mid-point fixing at an all-time high, while officials lamented the impact of imported inflation on China.
In the clearest comments so far about worries over surging global commodity prices, the Ministry of Industry and Information Technology said on Wednesday that China faced quickening imported inflation and some firms were suffering great losses from rising prices for raw materials.
PBOC Deputy Governor Hu Xiaolian, in an article published on the central bank's website on Tuesday, said China needed to strengthen the flexibility of the yuan to help ease the pressure of imported inflation, forecasting that commodity prices would continue to rise.
And Xia Bin, an academic adviser to the PBOC, even stated that he could not rule out another one-off revaluation for the currency, although the government has repeatedly said it would not consider another one-off adjustment in the yuan's value after a 2.1percent landmark revaluation in July 2005.
"Officials are now sending the clearest signs so far that the government is using the yuan as one of its main tools to help curb inflation," said a European bank dealer in Shanghai.
"There's is a strong potential for the yuan to appreciate at a faster pace via trading, guided by PBOC daily fixes, but we don't think the government would likely let the yuan revalue."
read more @ http://economictimes.indiatimes.com/markets/forex/yuan-hits-record-high-as-china-laments-imported-inflation/articleshow/8034578.cms
