Future money uncertainties
By Zhang Monan | China Daily | Updated: 2012-11-29 08:04
External factors have caused the recent rise in the yuan's spot exchange rate and the fall in its forward trading rates
The yuan's spot exchange rate against the US dollar has appreciated to a maximum daily ceiling more than 20 times since Oct 8.
The drastic appreciation, which has caused more and more domestic discussions about whether the yuan has entered a new appreciation cycle, is in sharp contrast with its continuous depreciation during most of the first half of this year. With a strong appreciation tendency, the yuan has continuously hit a new high against the dollar since China first launched reform of its exchange rate mechanism in 1994.
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