China’s central bank said it won’t revalue the yuan again in the “foreseeable future,” dismissing speculation that last week’s appreciation is the first of many.
Chinese companies need time to adjust to the 2.1 percent revaluation of July 21, the People’s Bank of China said, adding that the shift will help curb the nation’s trade surplus. Federal Reserve Chairman Alan Greenspan is among U.S. officials who called the change “a first step,” and forward contracts show investors expect a gain of 4.9 percent in the next year.
“The notion that the 2 percent revaluation is only an initial adjustment and that the central bank will further adjust the rate in the foreseeable future is wrong,” the People’s Bank of China said in a statement today in Chinese on its Web site.
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