Wednesday, May 18, 2005

China allows some FOREX trading, but not yet the Yuan

A day after the US threatened financial penalties if the yuan is not soon allowed to float, China took what some see (although China denies), as a small step in that direction. You can now trade otehr currencies in China--but not yetthe Yuan.

Latest News and Financial Information | Reuters.com:

"China, whose currency has been pegged near 8.28 per dollar since the 1997-98 Asian financial crisis, has faced pressure from the United States and other countries to let the yuan appreciate as they say it is unfairly cheap at current levels, giving Chinese exporters an advantage in world markets.

Beijing has vowed to free up the yuan according to its own timetable and has said reform of its banking system -- sagging under more than $200 billion in bad loans...is a key prerequisite."

"The China Foreign Exchange Trade System's (CFETS) new platform hosts trading in the U.S. dollar against the euro , yen , Hong Kong dollar , British pound , Swiss franc , Australian dollar and Canadian dollar , plus the euro versus the yen ."

1 comment:

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