China's central bank tried yesterday to dampen expectations that it might let the yuan rise quickly in value, saying any changes will come gradually following the decision to break the currency's link to the US dollar.
A statement issued by the bank denied what it said were mistaken news reports suggesting that the government might increase the state-controlled exchange rate of the yuan.
"Gradualism is one of the important principles in the yuan exchange rate mechanism reform," the statement said.
"Gradualism is aimed at the gradual reform of the yuan exchange rate mechanism, not at the gradual adjustment of the level of the yuan exchange rate," it said.
The government's move last week abandoned the yuan's decade-old link to the US dollar and switched to a more flexible system based on a basket of foreign currencies. The government also increased the yuan's value by about 2 percent against the US currency.
The yuan's daily movement is restricted to a 0.3 percent band against that basket. But economists say that over time, it could allow the yuan to strengthen by 10 percent to 15 percent against the dollar.
The central bank statement didn't give any indication of how much the currency might be allowed to rise.
The yuan opened trading yesterday on China's small, tightly controlled foreign-exchange market at 8.1097 to the dollar, up slightly from its level of 8.1111 at the start of trading on Monday.
Also yesterday, the main Communist Party newspaper said the size of the revaluation last week was determined by China's trade surplus and the ability of its companies to adjust.
The report by the People's Daily added to official comments that the change was based on China's economic needs, not pressure from the US and other trading partners.
"The scope of the 2 percent increase in value was excellent," the People's Daily said.
"This whole scope was determined by our country's trade surplus and needs to adjust, while at the same time considering domestic enterprises' ability to adapt," the paper reported.
It didn't give any more details.
But foreign news reports on Monday said Chinese leaders considered an initial increase of 5 percent in the yuan's value before deciding on 2 percent after lobbying from ministries worried about the impact on China's exporters.
US and other foreign companies say the yuan is undervalued by anywhere from 15 percent to 40 percent, giving Chinese exporters an unfair price advantage. US lawmakers had threatened to impose punitive tariffs if China didn't raise the yuan's value.
‘TAIWAN-FRIENDLY’: The last time the Web site fact sheet removed the lines on the US not supporting Taiwanese independence was during the Biden administration in 2022 The US Department of State has removed a statement on its Web site that it does not support Taiwanese independence, among changes that the Taiwanese government praised yesterday as supporting Taiwan. The Taiwan-US relations fact sheet, produced by the department’s Bureau of East Asian and Pacific Affairs, previously stated that the US opposes “any unilateral changes to the status quo from either side; we do not support Taiwan independence; and we expect cross-strait differences to be resolved by peaceful means.” In the updated version published on Thursday, the line stating that the US does not support Taiwanese independence had been removed. The updated
‘CORRECT IDENTIFICATION’: Beginning in May, Taiwanese married to Japanese can register their home country as Taiwan in their spouse’s family record, ‘Nikkei Asia’ said The government yesterday thanked Japan for revising rules that would allow Taiwanese nationals married to Japanese citizens to list their home country as “Taiwan” in the official family record database. At present, Taiwanese have to select “China.” Minister of Foreign Affairs Lin Chia-lung (林佳龍) said the new rule, set to be implemented in May, would now “correctly” identify Taiwanese in Japan and help protect their rights, the Ministry of Foreign Affairs said in a statement. The statement was released after Nikkei Asia reported the new policy earlier yesterday. The name and nationality of a non-Japanese person marrying a Japanese national is added to the
AT RISK: The council reiterated that people should seriously consider the necessity of visiting China, after Beijing passed 22 guidelines to punish ‘die-hard’ separatists The Mainland Affairs Council (MAC) has since Jan. 1 last year received 65 petitions regarding Taiwanese who were interrogated or detained in China, MAC Minister Chiu Chui-cheng (邱垂正) said yesterday. Fifty-two either went missing or had their personal freedoms restricted, with some put in criminal detention, while 13 were interrogated and temporarily detained, he said in a radio interview. On June 21 last year, China announced 22 guidelines to punish “die-hard Taiwanese independence separatists,” allowing Chinese courts to try people in absentia. The guidelines are uncivilized and inhumane, allowing Beijing to seize assets and issue the death penalty, with no regard for potential
‘UNITED FRONT’ FRONTS: Barring contact with Huaqiao and Jinan universities is needed to stop China targeting Taiwanese students, the education minister said Taiwan has blacklisted two Chinese universities from conducting academic exchange programs in the nation after reports that the institutes are arms of Beijing’s United Front Work Department, Minister of Education Cheng Ying-yao (鄭英耀) said in an exclusive interview with the Chinese-language Liberty Times (the Taipei Times’ sister paper) published yesterday. China’s Huaqiao University in Xiamen and Quanzhou, as well as Jinan University in Guangzhou, which have 600 and 1,500 Taiwanese on their rolls respectively, are under direct control of the Chinese government’s political warfare branch, Cheng said, citing reports by national security officials. A comprehensive ban on Taiwanese institutions collaborating or
RSS