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China’s Yuan Gains On The Dollar

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Yep, China’s economy is white hot and their currency is starting to show it.

From CBS News:

(AP) China’s currency strengthened Wednesday to its highest level against the dollar after the central bank began allowing banks a greater role in setting the yuan’s value.

The yuan was trading at 8.0681 to the dollar midday, up from 8.0702 yuan on Dec. 30, the last day of trading before the New Year’s holidays.

Since its July 21 revaluation to 8.11 yuan to the dollar, the Chinese currency has gained about 0.5 percent against the dollar.

The People’s Bank of China, the country’s central bank, on Wednesday began a new policy of calculating the yuan’s value against the dollar using a weighted average of the prices given by major banks. The highest and lowest offers are excluded from the calculation, the central bank said in a statement issued Tuesday.

Giving banks a role in setting the new daily benchmark, called the central parity rate, is seen as a sign the central bank is willing to allow market forces a greater role in daily trading.

I’m telling you…learn Chinese…