BEIJING - The exchange rate of the yuan,
China's currency, to the US dollar closed at
8.0912 on Wednesday's interbank foreign exchange
market, the highest since China raised the value
of the yuan from around 8.28 to 8.11 per dollar on
July 21, scrapping its peg to the dollar.
China Business News made the report on
Thursday. The latest yuan high occurred on
September 6, when its closing price relative to
the US dollar hit 8.0913, the newspaper said.
Since July of this year, China's exports have
continued their fast growth,
with trade surplus standing
at a high position, so the sale of US dollars is
active in the market, leading to the robust yuan,
the newspaper said. In August, China's exports
soared 32.1 per cent year on year, with a trade
surplus totaling US$10.04 billion, according to
China's Ministry of Commerce.
The
imbalance of Sino-US trade has pushed the yuan to
further appreciate against the US dollar, the
newspaper quoted a broker in a foreign-funded bank
in Shanghai as saying. It is not surprising for
the yuan to keep hitting new highs since the
public believes there is still room for the yuan
to rise, the broker said.
No plans for
further revaluation: official China will
not adjust its currency's exchange rate through
another revaluation, the Associated Press reported
September 15, citing a senior central bank
official. Responding to questions about
speculation over such a move, Yi Gang, an
assistant to the governor of the People's Bank of
China, Zhou Xiaochuan, said Beijing was confident
it can keep the yuan stable while allowing it to
adjust gradually to market pressures under what it
calls a "managed floating regime."
"The
exchange rate [will] continue to be set by the
managed floating regime rather than by official
revaluation," Yi told Dow Jones Newswires on the
sidelines of a financial conference.
Other
Chinese officials have also stressed that Beijing
plans no more revaluations following a July 21
move that shifted the yuan's value against the
U.S. dollar by 2.1 per cent to 8.11 yuan per
dollar. With that move, China began linking the
yuan to a basket of currencies of its major
trading partners instead of just the dollar.
The yuan rose against the dollar Thursday,
closing at 8.0887, its highest level since the
July 21 revaluation. The yuan closed at 8.0912 on
Wednesday.
