The yuan ended flat against the dollar on Wednesday ahead of next week's annual economic policy-making conference which may show the Chinese government fine-tuning its long-standing stable yuan policy. The Central Economic Working Conference will be held Monday to Wednesday.
The meeting, to be attended by senior officials from both central and local governments, will review China's stimulus measures over the past year and determine the parameters of policy for next year. "We expect the meeting may show the government possibly allowing the yuan to steadily appreciate next year," said a dealer at a European bank in Shanghai. "The policy may be more flexible and more closely reflect market movements."
Spot yuan closed at 6.8263 on Wednesday, almost unchanged from 6.8260 at the close on Tuesday. The Chinese central bank fixed the yuan's daily mid-point at 6.8268 versus the dollar, only 2 pips higher than Tuesday's 6.8270. "Now that China's economy has kept up its steady pace of recovery, the yuan will appreciate sooner or late," said a dealer at an Asian bank in Shanghai.
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