YEREVAN, April 8. /ARKA/. A backtracking by China in its commitment to move toward a market-determined exchange rate for the yuan would provoke serious concern in the Obama administration, a U.S. Treasury official said.
China allowed the yuan to depreciate before widening the exchange-rate band on March 17. The changes occurred as China continued to build current-account surpluses, accumulate excessive foreign reserves and attract significant net foreign-direct investment, the official said today on condition of anonymity.
Since the start of this year, the People’s Bank of China has guided a 2.5 percent loss on the yuan to help curb speculative bets on appreciation of the currency, according to Nomura Holdings Inc. –0--