The yuan ended flat against the dollar on Friday as the Chinese central bank set the daily mid-point only three pips lower, highlighting a preference to keep the yuan stable despite the dollar holding firm versus a basket of six major currencies in recent days.
Zhu Min, a vice governor with the People's Bank of China, told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending. He also said on Friday that China would contribute more than half of world gross domestic product (GDP) growth in 2009 and will continue to lead global growth in coming years.
The Chinese central bank fixed the yuan's daily mid-point, or reference rate, at 6.8284 versus the dollar on Friday, little changed from Thursday's 6.8281. Spot yuan closed at 6.8280 per dollar, barely changed from 6.8286 at the close on Thursday. "We expect the Chinese economy will be rosy and the yuan will appreciate slowly next year".
Comments
Comments are closed.