The Chinese central bank on Monday morning fixed the daily mid-point for the renminbi’s level against the dollar at Rmb6.8275, the same as on Friday.
On Saturday China announced to further reform the RMB Exchange Rate Regime and to enhance the RMB exchange rate flexibility. However, in a follow-up statement on Sunday it stressed that a substantial appreciation in the currency was “not in China’s interests” and that the exchange rate would remain “basically stable”. The fact that it did not change the mid-point of the renminbi’s trading band from Friday’s level indicated that any appreciation in the currency will be very gradual and controlled.
Tim Geithner, US Treasury secretary, said: “We welcome China’s decision to increase the flexibility of its exchange rate.” But he added that “vigorous implementation” was needed to help boost the global economy.