China has hinted at changing its long-standing yuan policy to liberalise its currency against the dollar, signalling willingness to alter course on exchange rates.
For the first time in an annual government report, China included the requirement to ensure the stable global status of yuan as one of its major tasks, dropping the line “keeping a stable yuan at a reasonable and balanced level” which was included in the previous three reports, Hong Kong-based South China Morning Post reported.
In his lengthy work report submitted to China’s National People’s Congress (NPC) Chinese Premier Li Keqiang said “the renminbi exchange rate will be further liberalised, and the currency’s stable position in the global monetary system will be maintained”.
The new wording may indicate that Beijing will be more tolerant of yuan exchange rate moves against the dollar and gradually reduce its intervention in the foreign exchange market this year, the Post report said. (The Hindu)
0 comments: