Home | Community | Message Board

Please support our sponsors.

General Interest >> Political Discussion

Welcome to the Shroomery Message Board! You are experiencing a small sample of what the site has to offer. Please login or register to post messages and view our exclusive members-only content. You'll gain access to additional forums, file attachments, board customizations, encrypted private messages, and much more!

Jump to first unread post. Pages: 1
Registered: 06/12/03
Posts: 3,104
Dollar is quaint
    #4432213 - 07/21/05 08:32 AM (12 years, 9 months ago)



BEIJING - China scrapped the yuan?s peg to the U.S. dollar on Thursday and tied it to a basket of currencies, the nation?s central bank said, the first steps in highly anticipated reforms aimed at letting the currency float freely.

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.

China?s newly announced shift to a basket currency system will help reduce volatility of the yuan exchange rate, a central bank spokesman said.

Any sharp swing in the yuan?s exchange rate would hit China?s financial system, and therefore would not be in Beijing?s interest, a central bank statement quoted the spokesman as saying.

Post Extras: Print Post  Remind Me! Notify Moderator
Jump to top. Pages: 1

General Interest >> Political Discussion

Similar ThreadsPosterViewsRepliesLast post
* The War To Save The U.S. Dollar Lumocolor 765 10 08/12/04 10:04 PM
by Ed1
* Euro VS Dollar
( 1 2 all )
GazzBut 2,789 22 10/08/03 09:51 AM
by infidelGOD
* Eichel - U.S. will one day realize PAIN of weak dollar.
( 1 2 all )
lonestar2004 2,985 21 01/01/05 01:14 AM
by Phred
* Euros vs Dollars? pattern 1,591 14 02/20/03 01:55 PM
by pattern
* paper money as currency?Inflation? stock HOW?? fake economy?
( 1 2 all )
kaiowas 2,213 22 08/26/03 10:37 AM
by Anonymous
* Dollar headed for collapse: Mahathir trick 692 9 04/03/05 06:27 PM
by Great_Satan
* Euro Falls to Near Two-Year Low Against Dollar! lonestar2004 687 8 11/08/05 06:41 PM
by phi1618
* What are your opinions of the U.S. dollar's decline?
( 1 2 3 all )
1,639 40 11/19/05 01:04 PM
by phi1618

Extra information
You cannot start new topics / You cannot reply to topics
HTML is disabled / BBCode is enabled
Moderator: Enlil
240 topic views. 1 members, 3 guests and 3 web crawlers are browsing this forum.
[ Toggle Favorite | Print Topic | Stats ]
Search this thread:
Everything Mushrooms
Please support our sponsors.

Copyright 1997-2018 Mind Media. Some rights reserved.

Generated in 0.076 seconds spending 0.019 seconds on 30 queries and 0.034 seconds on Sphinx.