China hints yuan policy change

Date: Monday 08 Mar 2010

Zhou Xiaochuan, the governor of the People’s Bank of China, has hinted that China could abandon the yuan's unofficial peg to the dollar.

Speaking during the annual session of the National People's Congress on Saturday, Zhou said the dollar peg, in place since mid-2008, is a “temporary” response to the global financial crisis.

“We don't rule out that during some special periods, such as the Asian financial crisis and the global financial crisis this time, we adopted special policies, including a special exchange-rate mechanism.”

“The exchange-rate mechanism and the price of the renminbi are in a dynamic process of continuous change,” he added.

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