(1888PressRelease)
December 06, 2007 - The nation's ruling Communist Party appointed four new members to its top executive body at its congress last week, making them potential successors to President Hu Jintao. The Group of Seven nations called for a quicker advance, even after the yuan's 10.5 percent gain since scrapping a dollar peg in July 2005.
Ovetii’s senior analyst reportedly stated that on matters such as the currency, it is difficult for us to see any major break with present policy. They also forecast yuan gains of 0.9 percent until the end of the year.
The yuan rose 0.09 percent today to 7.4835 per dollar as of 10:43 a.m. in Shanghai, the strongest in more than a decade. It yesterday climbed 0.16 percent, the biggest gain in a month. Standard Chartered forecasts 7.42 at year-end.
Ovetii analysts reportedly went on to say that we could expect a burst of appreciation after the Congress, but also cautioned against taking this as evidence that next year will see anything more than 6 percent.
U.S. Treasury Secretary Henry Paulson said Oct. 23 that China should allow the yuan to rise faster in the short term, and let markets set the currency's value in the medium term. China must also become less reliant on exports and heavy industry, he said in a conference speech in Washington.
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