Renminbi remains unchanged despite policy shift | Morgan Hedge | Hedgefonds Datenbank & Research
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Renminbi remains unchanged despite policy shift
 
  Hedgeweb - MO, 21. JUN 2010
News China left its exchange rate with the US dollar unchanged on Monday despite their pledge over the weekend to introduce a more â??flexibleâ?� policy.

The Chinese central bank on Monday morning fixed the daily mid-point for the renminbiâ??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 â??not in Chinaâ??s interestsâ?� and that the exchange rate would remain â??basically stableâ?�. The fact that it did not change the mid-point of the renminbiâ??s trading band from Fridayâ??s level indicated that any appreciation in the currency will be very gradual and controlled.

Tim Geithner, US Treasury secretary, said: â??We welcome Chinaâ??s decision to increase the flexibility of its exchange rate.â?� But he added that â??vigorous implementationâ?� was needed to help boost the global economy.

 
 
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