Chinese say yuan will be more flexible

The Cambodia News.Net
Wednesday 23rd June, 2010

China's central bank has indicated that the yuan will slowly become more flexible, as it allows it to appreciate over the coming days.

Exporters in China have expressed concerns that if the government appreciates the yuan too fast or by too much, the export sector will be hurt, causing mass unemployment.

But, while the Chinese currency still stands at about 6.8 against the US dollar, there have been suggestions from analysts that China will continue to gain a trade advantage by manipulating its currency

With concerns that China is merely making half-hearted moves, the US has said it will bring up the issue at the G20 summit, whose members will be aware that China’s export offerings will become less attractive with a higher yuan.