Foreign Exchange News
- Yuan's climb expected to continue
Date: 6-Feb-2007 Sources: (Xinhua Online)
The yuan is expected to gain further ground this week amid optimism of China's strong economic growth and swelling trade surplus. Analysts said the yuan will climb further over the coming five days.
The Chinese currency closed at 7.7560 against the United States dollar on Friday, up from the 7.7758 from the previous week.
The yuan has gained more than six percent since July 2005, when the central bank abandoned the decade-long fixed exchange rate of 8.28 to the U.S. dollar.
Analysts expect the yuan to rally for the entire year as China puts the ballooning trade gap near the top of its 2007 agenda.
The country's trade surplus rose to 177.5 billion U.S. dollars last year from 102 billion dollars in 2005.
The gap may further widen to 189 billion dollars this year as the country remains a major investment destination for global companies, said a report by the Academy of Macroeconomic Research, an affiliate of the National Development and Reform Commission.
Meanwhile, the Chinese economy grew 10.7 percent in 2006, the biggest increase in 10 years. The central bank's research unit predicted the economy is likely to cool this year under macroeconomic controls, but could still grow 9.8 percent.
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