Yuan to stay stable versus greenback
By Ding Yining |
February 1, 2010, Monday
|
Print Edition
Print Edition
THE yuan is likely to stay stable against the United States dollar as China is not likely to turn to exchange rates and shift to a tighter monetary policy in the short term, market watchers said.
The Chinese currency remained basically flat against the greenback last week and ended at 6.8270 last Friday, according to the China Foreign Exchange Trade System. The yuan closed at 6.8271 at the end of the previous week.
"The central bank is unlikely to resort to price-oriented tightening tools such as interest rate hikes or to let the yuan rise until it has exhausted its quantitative tightening options," said Liu Dongliang, a strategist at China Merchants Bank.
He added that neither the market nor the economic conditions are ripe for China to raise key interest rates.
China raised banks' reserve ratio by 0.5 percentage points to 16 percent on January 18 to curb liquidity.
Zhu Min, deputy governor of the People's Bank of China, said at the World Economic Forum in Davos on Saturday that China is trying to boost consumption but still needs time to shift from an export-oriented economy to one powered by domestic consumption.
The Chinese currency remained basically flat against the greenback last week and ended at 6.8270 last Friday, according to the China Foreign Exchange Trade System. The yuan closed at 6.8271 at the end of the previous week.
"The central bank is unlikely to resort to price-oriented tightening tools such as interest rate hikes or to let the yuan rise until it has exhausted its quantitative tightening options," said Liu Dongliang, a strategist at China Merchants Bank.
He added that neither the market nor the economic conditions are ripe for China to raise key interest rates.
China raised banks' reserve ratio by 0.5 percentage points to 16 percent on January 18 to curb liquidity.
Zhu Min, deputy governor of the People's Bank of China, said at the World Economic Forum in Davos on Saturday that China is trying to boost consumption but still needs time to shift from an export-oriented economy to one powered by domestic consumption.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
