Regulator warns Chinese not to ‘gamble’ on yuan exchange rate

ArticleCurrencyApril 4, 2018 - 8:09:21 AM

Currency has gained about 9% against the US dollar in a year

China’s forex regulator has warned residents and companies not to “gamble” on the yuan’s exchange rate, as the currency’s rapid appreciation raises concerns about its impact on Chinese exports.

The warning from Wang Chunying, head of the international payments department at the State Administration of Foreign Exchange, came after the yuan has gained about 9 per cent against the US dollar in the last 12 months.

That has fuelled talk that China is on a similar trajectory to Japan after it signed the Plaza Accord in 1985 – to weaken the US dollar against the yen, resulting in a sharp rise in the Japanese currency – when it was under pressure from Washington to cut its trade surplus...

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