China slowed further devaluation of the yuan and said that the setting “concluded” – Clarín.com

The Central Bank of China said that “adjourned essentially” the devaluation of the yuan. The Chinese currency, which had come to drop to trade at 6.44 yuan per dollar recovered to be at the end of the day at 6.39 yuan. The cumulative devaluation then comes to 3.2%, compared with 6.20 yuan per dollar recorded before starting this financial move.

The coin must “stay strong long term, “said the deputy governor of the Bank of China, Zhang Xiaohui, quoted by Xinhua. There is no reason for a sustained devaluation or significant time , he said.

Earlier, the company set a price of 6,401 yuan per dollar, 1.1 percent more lower than the previous day.

The statements and especially the official decision to stop the fall of the yuan brought relief to the markets of the West. Europe bags operated with rises of up to 2% and the average Wall Street futures anticipated a positive wheel.

The official came to discourage speculation to suggest that the Chinese government’s plan achieve a devaluation of its currency 10%

Zhang said the price has been too far from the actual market value, the weaker time, the remainder credibility to the reference rate. Deputy Governor considered that the distance was three percent and therefore, with the current drop the yuan “has been going step by step to its market value.” The price now reflects the economic reality as seen by Chinese experts, he said.

The Chinese currency is still not totally free float as others, so that the reference value is set every day is of great importance. The central bank only allows fluctuations of up to two percent up or down from the set figure.

So far, the value was established by the company, while the authorities announced on Tuesday that the new political figure will be directed according to the previous day’s close, which gives greater influence to the market.

The International Monetary Fund (IMF) welcomed the measure but also criticized China and strengthen its look exports do not go through a good time. In July, China’s exports fell 8.3 percent from the same month last year.
There are also fears that other countries devalue their currencies to remain competitive.

Another member board of governors, Yi Gang, rejected versions of the media according to which the government wants to devalue the currency to ten percent by the end of the year to boost exports. They are without any foundation information, said Yi Gang. “The renminbi was overvalued three percent”, said dpa Professor Huang Weiping, University of the People. But the fluctuation of the exchange rate will not automatically be reflected in prices, because they depend more on supply and demand.