Thursday, August 13, 2015

China sees no basis for further yuan devaluation – Reuters Germany


       

Shanghai (Reuters) – China’s central bank sees the face of good economic fundamentals no basis for a further devaluation of national currency yuan.


       

The trade surplus, the sound fiscal policies and large holdings of foreign currency exchange rate given to the “strong support”, the central bank said on Thursday. You’ll be watching if there were unusual cross-border currency flows. In addition, it will improve the mechanism for price determination of the yuan continues to ensure normal fluctuations in the exchange rate.


       

The yuan weakened on Thursday the third day in a row. The People’s Republic had devalued the yuan on Tuesday and Wednesday by a change in the exchange rate down to around four. The export champion hopes that this advantage in the battle for market share and momentum for the sluggish economy, are his goods abroad but characterized more attractively priced. The Fed described the step as unique. Government circles, however, was reported that China striving for a devaluation of almost ten percent.


       

The Lieutenant Governor of China’s central bank, Yi Gang, said on Thursday that the country as part of the liberalization of financial markets to accelerate the opening of its foreign exchange market and would attract more foreign investors.


       

In response to the devaluation of the Yuan Chinese steelmakers lowered to information from insiders already export prices for steel. Some small Chinese companies have reduced the price for rebar to build five to ten dollars per ton, reported from industry sources on Wednesday. China’s steel industry is the largest in the world. Lower demand in the People’s Republic has many steelmakers but forced to carry record amounts abroad.

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