China's recent move to improve its exchange rate formation system marked the country's further step toward a market-oriented exchange rate system and the depreciation of the Chinese currency has been misinterpreted by some critics, experts said.
The recent sharp depreciation of China's currency is just a temporary correction after a change in the country's central parity rate formation system.
The Chinese currency renminbi (RMB), or the yuan, should remain strong in the long run, a central bank official said Thursday, after worries that the bank's adjustment of the exchange rate mechanism earlier this week would lead to a slump in the currency.
The central parity rate of the Chinese currency renminbi, or the yuan, strengthened by 35 basis points to 6.3975 against the U.S. dollar on Friday after a three-day slump, according to the China Foreign Exchange Trading System.
Chinese yuan extended its decline on Wednesday but is unlikely to depreciate significantly as the central bank and stable fundamentals will not allow the currency to go into freefall.
The adjustment to close the gap between central parity rate and actual trading rate of Chinese currency renminbi (RMB), or the yuan, has basically completed, an official of the People's Bank of China said Thursday at a press conference. Enditem
The International Monetary Fund (IMF) on Tuesday welcomed China's move to improve its foreign exchange formation system and said a more market-oriented exchange rate would facilitate the Special Drawing Right (SDR) operation if RMB was included in the basket.
The central bank on Tuesday revised the yuan's central parity rate formation system to give the market a louder voice, and the market answered - with a sharp fall.
Chinese currency continued to fall on Wednesday after the central bank reformed the exchange rate formation system to better reflect the market.
China's currency fell sharply in value on Tuesday following the central bank's decision to improve its "central parity system" to better reflect market development in the exchange rate between the Chinese yuan against the U.S. dollar.
Despite having had a clear economic growth advantage over many other EU countries over the past two decades Austria now no longer has this edge, a labor market expert said Monday.
U.S. Federal Reserve on Wednesday said the country's economy and job market continued to improve since June, a sign that the central bank remains on track to raise interest rate later this year. But it didn't provide a clear signal for the rate hike timetable.
Analysts on Thursday expressed mixed reactions to the South African central bank's decision to raise the repo rate to 6.0 percent.
Although many presidential candidates' blueprints are grabbing headlines in the run-up to the 2016 U.S. elections, it seems that most Americans still hold a dim view of both Democrats and Republicans.
Gold futures on the COMEX division of the New York Mercantile Exchange fell Monday as the market continued to price in expectations for a future increase in the U. S. interest rate.
U.S. fixed mortgage rates surged to a ten-month high as ten-year Treasury yields increased, said the Primary Mortgage Market Survey released Thursday by Freddie Mac.
South Korea's central bank on Thursday kept its policy rate on hold at an all-time low of 1.5 percent after lowering it by a quarter percentage point the prior month to counter flagging domestic demand caused by the outbreak of Middle East Respiratory Syndrome (MERS).
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