Arab Today, arab today imf welcomes chinas new currency valuation mechanism
Last Updated : GMT 08:53:10
Arab Today, arab today
Arab Today, arab today

IMF welcomes China's new currency valuation mechanism

Arab Today, arab today

Arab Today, arab today IMF welcomes China's new currency valuation mechanism

Yuan banknotes
Washington - AFP

The International Monetary Fund welcomed Beijing's newly announced system to value the country's currency, saying it will allow market forces to play a greater role in the nation.

China cut the yuan's value against the dollar for a second day Wednesday, sending ripples through financial markets and raising fears that the currency could fall further.

After Tuesday's devaluation Chinese authorities said they were seeking to push market reforms in a one-time move.

Officials say they will now use the previous day's close, foreign exchange demand and supply and the rates of other major currencies to decide the daily rate around which the Chinese currency can trade.

The IMF said the step could be a boon in the long run.

"The new mechanism for determining the central parity of the renminbi (yuan) announced by the PBC (People's Bank of China) appears a welcome step as it should allow market forces to have a greater role in determining the exchange rate," an IMF spokesman said in a statement.

"Greater exchange rate flexibility is important for China as it strives to give market forces a decisive role in the economy and is rapidly integrating into global financial markets," the statement said, adding that China "can, and should" achieve a floating exchange rate within two to three years.

"The exact impact will depend on how the new mechanism is implemented in practice," the spokesman said.

China has been criticized by some for keeping its currency undervalued to gain a trade advantage for its exports.

Beijing also seeks to have the yuan included in the IMF's basket of special drawing rights (SDR) basket reserve currencies.

The new change has no "direct implications" in the measure used for creating that basket, the spokesman said.

"Nevertheless, a more market-determined exchange rate would facilitate SDR operations in case the renminbi were included in the currency basket going forward."

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf welcomes chinas new currency valuation mechanism Arab Today, arab today imf welcomes chinas new currency valuation mechanism

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf welcomes chinas new currency valuation mechanism Arab Today, arab today imf welcomes chinas new currency valuation mechanism

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday