Chinese Yuan Breaks 73rd Record in 2007
The Chinese yuan broke a record for the 73rd time this year when it stood at 7.3992 to the dollar, the first time ever under 7.4 today.
The yuan has climbed 4.095 basis points or more than 5.35% in value from the 7.8087 that it closed at on the last day of trading in 2006.
The appreciation is 9.4% going back to July 21, 2005, the day China discontinuned the yuan's peg to the US dollar.
The Chinese yuan has a trading ban of 0.3%. It cannot fluctuate more than that in any one day.
However, Beijing is considering widening it to 0.5% in May.
Meanwhile, the central bank is ordering commercial banks to hand over their foreign currencies hoping that will help slow down the RMB's appreciation.
Meanwhile, the trade deficit continues to climb.
What do you think it will take to narrow the trade deficit?
Leave a comment!