Vice Premier: China sticks to reform, opening up
(Xinhua/AP)
Updated: 2006-12-14 13:57
Yuan hits record high
China's currency surged to a new record high on Thursday as US and Chinese
officials held the first strategic economic dialogue in Beijing,
hitting 7.8180 per US dollar in early trading.
The yuan's appreciation
against the US dollar has gained momentum in weeks leading up to an inaugural
round of "strategic economic talks" involving top members of US President George
W. Bush's administration.
The official, or parity rate for the yuan was
set at a record high 7.8197. The yuan gained further in early trading, dealers
said.
In opening remarks to the trade talks, US Treasury Secretary Henry
Paulson said China's currency policies would be among topics tackled in the two
days of discussions.
China has pledged to gradually loosen foreign
exchange controls and let market forces determine the yuan's value. However,
Chinese officials contend that such changes must be gradual to avoid shocks to
the country's developing financial institutions.
China revalued the yuan
by 2.1 percent, to 8.11 yuan per dollar, in July 2005. Since then, the yuan has
gained about 3.6 percent against the dollar.
The yuan's gain early
Thursday ran counter to the dollar's overnight recovery against major currencies
elsewhere.
The People's Bank of China, the central bank, announces the
parity rate -- a weighted average of prices given by market makers, excluding
the highest and lowest offers, early each trading morning.
On Wednesday,
the dollar was at 7.8248 on the over-the-counter market.
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