US, European and other critics complain that China keeps its currency, the yuan, artificially weak, which they argue gives Chinese exporters an unfair advantage and China has responded by allowing the yuan to appreciate gradually, and slightly faster in recent weeks, but it has refused to scrap its controls completely.
On Monday, the yuan hit a new high against the US dollar smashing the 7.26 mark to reach 7.2566 yuan to one dollar, which marked an appreciation of about 12 percent since the currency’s peg to the greenback was loosened in July 2005. The yuan is likely to appreciate by around eight to 10 percent against the dollar in 2008, according to Qiu Qingdong, a Beijing-based economist with Guodu Securities, whose estimate was similar to those given by other analysts. My advise to you is to keep your money in yuan or RMB instead of US dollars.
Source : AFP
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