Yuan makes biggest weekly rise
(Shanghai Daily)
Updated: 2006-06-12 13:45
The yuan had its biggest weekly gain in 10 months last week as the country
announced plans to remove restrictions on purchases of foreign currencies.
The yuan closed at 8.0112 to the US dollar on Friday in Shanghai, a weekly
gain of 0.14 percent. The exchange rate between the yuan and US dollar closed at
8.0220 on June 2 and 8.0250 on May 27.
The State Administration of Foreign Exchange, the country's top forex
regulator, said on Thursday it will remove rules on how much foreign currency
Chinese companies can buy to fund investment overseas.
Chinese enterprises will move quickly to make acquisitions and other
investments around the globe, analysts said. China set strict quotas on how much
domestic firms can buy to invest in foreign countries and regions previously.
China abandoned its currency's peg to the US dollar and made an one-time
appreciation of the yuan of 2.1 percent on July 21. The yuan was previously
fixed at about 8.3 percent before the appreciation. The yuan closed at 1.03194
to the Hong Kong dollar last week.
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