The Chinese government is reviewing proposals to adjust its currency exchange rate system next month, Chinese media reported, as international pressure grows on Beijing to revalue the yuan.
The proposals include giving the yuan a more flexible exchange rate by widening the Chinese currency’s narrow daily trading band, the weekly Caijing Magazine reported in its latest issue, citing unnamed sources.
Currently the yuan may rise or fall 0.5 per cent against the dollar each day from a mid-point set by the central bank and three percent for non-dollar currencies such as the euro and Japanese yen.
The magazine said it had been proposed the change should take effect in April. The timing would be significant, with US lawmakers pushing the Treasury Secretary Timothy Geithner to label Beijing a ‘currency manipulator’ in a report due April 15 that could trigger tougher action on China.
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