Home>News Center>China

Composition of currency basket revealed
By Dai Yan in Shanghai and Vincent Lam in Hong Kong (China Daily)
Updated: 2005-08-11 06:04

Governor of China's central bank Zhou Xiaochuan yesterday revealed details of the basket of currencies used to determine the value of the yuan.

Central bank governer Zhou Xiaochuan speaks at China Economic Summit held in Beijing May 21, 2005. [newsphoto/file]
Dominant amongst a raft of currencies are the US dollar, the euro, the yen and South Korea's won.

The Singapore dollar, pound sterling, the Malaysian ringgit, the Russian rouble, the Australian dollar, the Thai baht and the Canadian dollar are also considered in the calculation, Zhou said.

Speaking at the opening of the second headquarters of the People's Bank of China in Shanghai, Zhou explained that the currencies were chosen for their share of China's foreign trade, foreign debt and foreign direct investment.

At the moment the United States, the euro zone, Japan and South Korea are China's biggest trading partners. "Their currencies are naturally the main ones in the basket," Zhou said.

Any economy that has an annual bilateral trade volume of more than US$10 billion cannot be neglected in the basket, he said.

Those with an annual trade volume of more than US$5 billion should also be considered, he added.

Zhou did not give details of the weightings of individual currencies in the basket.

On July 21, China cut the yuan's years' peg to the dollar, allowing it to move in a restricted float - to rise or fall by 0.3 per cent a day against the greenback.
Page: 12

Chimpanzee suffers from smoking addiction
The tide is high but they're holding on
China, Russia military drills stage landing
  Today's Top News     Top China News

EU, China begin talks on textile row



Joint forces storm beaches at climax of drills



Taiwan students on mainland given level fees



Japan, China to jointly develop 4G mobile



China says market to decide yuan's value



CCTV sends record invitations for festival


  Temasek close to buying BOC stake - FT
  N. Korea nuclear talks likely as planned
  Japan, China to jointly develop 4G mobile
  Two bus accidents claim 33, injure 56
  NPC debates further raising tax threshold
  Farmers protest over alleged lead poisoning
  Go to Another Section  
  Story Tools  
  Related Stories  
Economist sees no more yuan moves soon
Central bank wants a stable currency
Central bank wants a stable currency
Exchange rate range to adjust at proper time
Exchange rate range to adjust at proper time
Exchange rate range to adjust at proper time
China's yuan closes just shy of post-reval high
  News Talk  
  It is time to prepare for Beijing - 2008