China's yuan Likely to Keep Rising, Become More Flexible?
The yuan hit a new high last Thursday, but on Monday followed with its sharpest fall -- 203 basis points -- since a revaluation reform was launched in July last year. The official exchange rate on Wednesday was 7.9827 per U.S. dollar.
Zhang Liqun, a research fellow at the Development and Research Center of the State Council, said, "Even if the yuan slips back temporarily, expectations about its overall rise will not be altered."
Appreciation pressures on the yuan stem from China's huge trade surplus -- which hit a record 14.6 billion U.S dollars in July, a rise of 40.6 percent on the same month last year -- and skyrocketing source:http://www.zoomchina.com.cn/index.php?/c.
Answer:
Maybe.. China is rising some of its export tariffs for the purpose of the currency raise. Other Questions and Answers: