China abolishes yuan-dollar peg, adopts floating rate
By Xu Binglan (China Daily)
Updated: 2005-07-21 19:37

The United States praised China's decision to move to a more flexible currency system.

"I welcome China's announcement today that it is adopting a more flexible exchange rate regime," Treasury Secretary John Snow said in a statement.

China's move is regarded as a significant change by foreign analysts.

Immediately after the move, Malaysia said it was also unpegging its currency, ringgit, from the US dollar and replacing it with a managed float.

But Hong Kong said it would retain its currency peg with the US dollar. "The government has no intention at all of changing the Linked Exchange Rate system, which has served Hong Kong well for more than 21 years and has been the anchor of our economic stability," the city's acting financial secretary Stephen Ip said.

Lee Ferridge, chief currency strategist at Rabobank in London, said there was some surprise at China's announcement.

But "we were all waiting for it to come at any time. It's the biggest economic event of the year."

Page:

1

2

3

4

Close

Typhoon Haitang floods coastal areas Wholesalers at vegetable market in Nanjing Typhoon Haitang causes huge losses to Wenzhou

Today's Top News     Top China News
China abolishes yuan-dollar peg, adopts floating rate         US$3.1b deals inked to buy 20 Airbus A330s         London hit again by terror blasts         China affirms 'no first use' nuke policy         Ship sinks, 9 Chinese missing off Japan coast         Power plants pushed to boiling point	Premarital checks ensure healthy babies       China abolishes yuan-dollar peg, adopts floating rate       China affirms 'no first use' nuke policy       Power plants pushed to boiling point       Joint US-China mission tackles illicit driftnet fishing       Beijingers get a say in next 5-year plan