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USD/CNY at Record Low Level

February 15, 2008 at 11:57 by Andriy Moraru

Chinese yuanThe Chinese yuan continued its triumph this week and was set at a new record high value against the U.S. dollar today at the Shanghai Foreign Currency Trade session.

It will be 10th straight gaining week for the yuan if it closes at the 7.179 yuan per dollar. It is significantly lower rate than yesterday’s 7.1904.

Since European and American officials started to press on Chinese government to appreciate yuan faster, the currency began to grow against other major currencies at a really robust pace. It grows not only against dollar, but also against euro, which is in a rather flat trend against the dollar since the beginning of 2008.

Today Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, stated in Beijing that China needs to continue with yuan appreciation, because it will help both with inflation and with the international trade imbalance:

The Chinese government is [also] confronting several macroeconomic policy challenges, including preventing inflation — largely the result of food price increases in recent months — from becoming entrenched, and rebalancing growth away from heavy reliance on exports and investment toward consumption.

If you have any questions, comments, or opinions regarding the Chinese Yuan, feel free to post them using the commentary form below.

2 Responses to “USD/CNY at Record Low Level”

  1. Farzand

    The Chinese need to appreciate their currency for their interest ,as inflation is very high in China. The export from China is on the increase but needs to slow down or they economy is suffer from burn out

  2. Bilal Javed

    China needs to slow down it’s growth in 2008 to sustain it. Although exports are high but inflation is a real concern. Hence, sustainable development is what is the need. A growth of 9% will be economy friendly.

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