China does not plan to revalue the yuan during next week's Labor Day holiday, a central bank spokesman said yesterday, quashing rumors that such a change was imminent.
"As far as we know, there's no adjustment expected in the yuan exchange rate," Bai Li (
A brief wave of speculation over a possible shift in currency policy roiled regional share and currency markets yesterday. Such rumors have been circulating in the past week, despite official denials that major changes were pending.
A key measure of expectations for the yuan's future value, discounts on US dollar/yuan non-deliverable forwards (NDFs), widened sharply to 4800/4200 from 4300/4150 yesterday morning amid revived speculation over a possible revaluation.
The NDF discount rate does not affect the yuan's actual value.
Bai yesterday declined to comment on the movement, saying: "It's up to the market to explain any market activities."
Authorities sometimes choose to announce policy changes during public holidays, and China's financial markets will be closed next week for the national holiday.
China limits trading in the yuan and has kept its value in a narrow range near 8.28 yuan per US dollar since 1994.
The US and other nations say the yuan is undervalued, giving China's exporters an unfair price advantage.
Beijing says it will eventually let the yuan trade freely on world markets, but that doing so immediately would damage the country's frail banks and financial industries.
J.P. Morgan Chase & Co predicted China will loosen its decade-old peg to the US dollar next week.
Gong spoke after the Chinese central bank let the yuan strengthen to 8.2700 per US dollar, the most since the currency was fixed at around 8.3 per US dollar in 1995. The central bank then sold yuan to weaken it to 8.2775. The currency is currently allowed to trade 0.3 percent above and below 8.2770 per US dollar.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old