China vows freer yuan rate?

(The Standard, Aug 11, 2006) China's central bank pledged Thursday to gradually increase the flexibility of the yuan's exchange rate and to let market forces play a fundamental role in determining the currency's value.





In a statement issued to mark the one-year anniversary of landmark foreign-exchange reforms, the People's Bank of China said the changes to date had achieved their expected results.





China revalued the yuan by 2.1 percent against the US dollar in July 2005, when it also abandoned a dollar peg and shifted to a managed float against a basket of currencies.





To the frustration of US politicians who say the currency is substantially undervalued, the yuan has risen less than 1.8 percent since it was untethered from the dollar.





source:http://www.zoomchina.com.cn/index.php?/c...

China vows freer yuan rate?
yes,under pressure