AFP, Beijing
China's central bank yesterday widened the yuan's trading band in its new currency basket on the eve of the G7 meeting in a move seen as deflecting US criticism that it is footdragging on currency reform.
"Non-dollar denominated currencies will be allowed to fluctuate within a 3.0 percent range either side, compared with the original 1.5 percent," the People's Bank of China said in a statement.
The adjustment allows for the yuan to fluctuate against non-dollar currencies such as the euro and the yen by three percent either side of the midpoint but maintains the yuan-dollar band unchanged at 0.3 percent.
The tweaking comes as the Group of Seven was to meet yesterday in Washington, where US Treasury Secretary John Snow is scheduled to hold bilateral talks with Chinese Finance Minister Jin Renqing (
Snow is widely expected to press China for further currency reforms.
The central bank said the move was aimed at heading off speculators, with a widening of the band likely to increase transaction costs for them, and to help maintain a more stable yuan exchange rate.
It also reiterated its commitment to maintaining a stable yuan at a reasonable and balanced level but pledged to move towards a more flexible exchange rate.
While the move is seen as a necessary one, giving China's new currency basket system greater flexibility, the action was unlikely to appease US concerns that the currency needs to strengthen further.
"The US will welcome China's move but then say let's hope you can do more in the future," said Qu Hongbin (
"There is a need to make this move so that it would prepare the system to cope with major US dollar fluctuations in the market," said Qu.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source