China Takes Steps to Curb Its Surging Economy – Keith Bradsher
From International Herald Tribune:
The Chinese central bank announced Friday that it would allow its currency to fluctuate more during daily foreign exchange trading, but again rebuffed demands from the United States and Europe for a sustained rise in the yuan’s value.
The central bank also raised interest rates and demanded that commercial banks set aside more of their assets as reserves that cannot be lent. The two moves are aimed at tightening credit and reducing the risk of overheating in an economy that is growing at more than 11 percent a year and in mainland Chinese stock markets that have more than tripled since the beginning of last year. [Full Text]
See also Public Announcement of the People’s Bank of China on Enlarging the Floating Band of the RMB Trading Prices against the US Dollar in the Inter-bank Spot Foreign Exchange Market and Spokesperson of the People’s Bank of China Answers Questions on Enlarging the Floating Band of the RMB Trading Prices against the US Dollar in the Inter-bank Spot Foreign Exchange Market.