Shanghai (Reuters) – China’s central bank has sent plummeting again on Wednesday the country’s currency, the yuan.
The yuan fell to a four-year low after the central bank the People’s Republic had determined the average of the exchange rate for midweek even lower than in the significant devaluation on Tuesday. On the markets of step concerns sparked some traders from in front of a currency war. On Tuesday, the central bank had said that the devaluation of the yuan by two percent after a series of weak economic data was a one-off measure. With the weakening of the currency Chinese goods in the world market more competitive and the domestic economy should be stimulated.
The yuan is not a freely floating currency such as the euro. Rather, it is linked to the Dollar: The Federal Reserve Bank sets a working-day reference rate by which the yuan can fluctuate by up to two percent. On Tuesday, she laid it on 6.2298 yuan per dollar fixed to $ 6.1162 on Monday. On Wednesday of this 6.43 yuan per dollar was.
The Chinese stock markets gave on Wednesday after the yuan decline initially after, but stabilized later at about the previous day’s level.
The International Monetary Fund (IMF) sees the new method the Chinese central bank to determine the daily yuan reference rate positively. Market forces should continue to have a greater role in determining the exchange rate, the IMF said on Wednesday. This was a “welcome step” in the direction of greater flexibility. The Fund assume that China could have a freely floating exchange rate system in two to three years.
© Thomson Reuters 2015 All rights reserved.
No comments:
Post a Comment