Home>News Center>China
       
 

Interest rate gap helps manage currency
(Bloomberg/chinadaily.com.cn)
Updated: 2006-02-12 14:26

The enlarging interest-rate gap between China and the U.S. helps keep the yuan stable, and serves against world pressures for China's currency to further appreciate.

yi gang, assistant governor
Yi Gang, assistant governor of the People' Bank of China
The rising gap also provides favorable conditions for China to adjust exchange-rate and economic policies, the Bloomberg quoted a central bank official as saying.

The difference in key interest rates between the two countries is more than 300 basis points and growing, Yi Gang, assistant governor of the People' Bank of China, told an economic seminar in Beijing. He referred to the yield on China's one-year treasury bill of about 1.8 percent, compared to the gain of one-year U.S. dollar bill of 5 percent. A basis point is 0.01 percentage point.

The interest-rate gap, which has been expanding since early 2005 and is likely to widen further, has helped curb foreign currency inflows to China by deterring speculators seeking to profit from betting on yuan appreciation, Yi said.

``This is providing favorable conditions for China to adjust its exchange-rate policy and manage its macro-economic policies,'' Yi said.

The yuan has gained 0.7 percent since China revalued the currency on July 21 last year and ended a decade-old peg to the dollar. U.S. Senators Charles Schumer, a New York Democrat, and Lindsey Graham, a Florida Republican, are threatening to seek tariffs on Chinese imports unless the currency is allowed to gain more rapidly. Adjusting the yuan isn't the answer to trade disputes, said Yi.

Central bank officials have repeated that the interest rate gap between the two countries favors a stable yuan several times in recent months, said Song Guoqing, economic professor at Peking University's China Economic Research Center.

Yi's comments ``indicate that the central bank may be willing to allow the yuan to appreciate by 2 to 3 percent this year,'' Song said at the seminar, according to the Bloomberg report.

Song estimated that the yuan may appreciate to 7.94 to the U.S. dollar by the end of 2006. The yuan last closed at 8.0505 to the U.S. dollar on China's interbank foreign exchange market.
Page: 12



Lantern Festival
Chinese celebrates Lantern Festival
President celebrates festival with intellectuals
  Today's Top News     Top China News
 

Dependence on oil needs to be cut, says panel

 

   
 

China issues first guidelines on HIV

 

   
 

US VP accidentally shoots fellow hunter

 

   
 

Interest rate gap helps manage currency

 

   
 

Sharon in critical but stable condition

 

   
 

Love and noses: Here's looking at the new you

 

   
  Wolves to be reintroduced to control blue sheep
   
  Foreign firms hasten R&D establishment in mainland
   
  NGOs discuss environment plans at forum
   
  Illegal immigrant in US loses twin foetuses
   
  Retail sales to hit 10 trillion yuan by 2010
   
  Blast kills 15 miners in Central China
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  Related Stories  
   
Yuan closes at new high vs. dollar
   
Researcher: China unlikely to sell dollars
   
China must beware dollar fall - bank adviser
   
Yuan gains; revaluation pressure to ease
   
China restates yuan to rise gradually
   
Currency decisions 'sovereign' - Snow
   
Stronger RMB level in line with forex rules
Manufacturers, Exporters, Wholesalers - Global trade starts here.
Advertisement
         
主站蜘蛛池模板: 国产精品亚洲欧美大片在线观看 | 亚洲av无码码潮喷在线观看| 男攻在开会男受在桌子底下| 国产不卡在线观看| 国产高跟踩踏vk| 国产精品看高国产精品不卡| dy8888影院午夜看片| 悠悠在线观看精品视频| 久久久久久亚洲精品| 日韩精品卡二卡3卡四卡| 亚洲国产成人久久综合碰碰动漫3d| 清纯女神被老头耸动| 全黄性性激高免费视频| 羞羞视频免费网站含羞草| 国产交换配偶在线视频| 91网站网址最新| 国产福利午夜波多野结衣| 2021国产精品一区二区在线| 国外bbw免费视频| AAAA级少妇高潮大片在线观看 | 久久狠狠高潮亚洲精品| 最近免费中文在线视频| 亚洲国产欧美另类va在线观看| 波多野结衣xxxxx在线播放| 体育生开房互操| 粗大的内捧猛烈进出在线视频 | 亚洲日韩av无码中文| 永久免费毛片手机版在线看| 伊人大杳焦在线| 秋葵视频在线观看在线下载| 午夜影院app| 精精国产XXXX视频在线| 四虎AV永久在线精品免费观看 | 精品国产乱码一区二区三区| 四虎在线最新永久免费| 色大18成网站www在线观看 | 日本大片在线看黄a∨免费| 久久精品中文字幕无码| 星空无限传媒xk8046| 五月婷婷丁香久久| 最新欧美精品一区二区三区|