Chinese Yuan Advances to Strongest Since End of Dollar Link – Belinda Cao
The yuan rose to the strongest since a peg to the dollar was scrapped in July 2005, after the central bank reiterated its pledge to maintain a “tight” monetary policy this year.
The currency headed for the biggest three-day gain since the end of the dollar link, after advancing 7 percent in 2007, double the pace of the previous year. The central bank will further control liquidity and improve the currency exchange mechanism in 2008 to “adjust overall demand and improve the balance of international payments,” Governor Zhou Xiaochuan said in a New Year’s message on the bank’s Web site on Dec. 29. [Full Text]
Read also Chinese currency hits new high against U.S. dollar by Xinhua.