China, US start strategic economic dialogue
(Xinhua/AP)
Updated: 2006-12-14 11:04
Yuan hits record high
China's currency surged to a new record high on Thursday as US and Chinese
officials held the first strategic economic dialogue in Beijing,
hitting 7.8180 per US dollar in early trading.
The yuan's appreciation
against the US dollar has gained momentum in weeks leading up to an inaugural
round of "strategic economic talks" involving top members of US President
George W. Bush's administration.
The official, or parity rate for the
yuan was set at a record high 7.8197. The yuan gained further in early trading,
dealers said.
In opening remarks to the trade talks, US Treasury
Secretary Henry Paulson said China's currency policies would be among topics
tackled in the two days of discussions.
China has pledged to gradually
loosen foreign exchange controls and let market forces determine the yuan's
value. However, Chinese officials contend that such changes must be gradual to
avoid shocks to the country's developing financial institutions.
China
revalued the yuan by 2.1 percent, to 8.11 yuan per dollar, in July 2005. Since
then, the yuan has gained about 3.6 percent against the dollar.
The
yuan's gain early Thursday ran counter to the dollar's overnight recovery
against major currencies elsewhere.
The People's Bank of China, the
central bank, announces the parity rate -- a weighted average of prices given by
market makers, excluding the highest and lowest offers, early each trading
morning.
On Wednesday, the dollar was at 7.8248 on the over-the-counter
market.
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