China's central bank tried yesterday to dampen expectations that it might let the yuan rise quickly in value, saying any changes will come gradually following the decision to break the currency's link to the US dollar.
A statement issued by the bank denied what it said were mistaken news reports suggesting that the government might increase the state-controlled exchange rate of the yuan.
"Gradualism is one of the important principles in the yuan exchange rate mechanism reform," the statement said.
"Gradualism is aimed at the gradual reform of the yuan exchange rate mechanism, not at the gradual adjustment of the level of the yuan exchange rate," it said.
The government's move last week abandoned the yuan's decade-old link to the US dollar and switched to a more flexible system based on a basket of foreign currencies. The government also increased the yuan's value by about 2 percent against the US currency.
The yuan's daily movement is restricted to a 0.3 percent band against that basket. But economists say that over time, it could allow the yuan to strengthen by 10 percent to 15 percent against the dollar.
The central bank statement didn't give any indication of how much the currency might be allowed to rise.
The yuan opened trading yesterday on China's small, tightly controlled foreign-exchange market at 8.1097 to the dollar, up slightly from its level of 8.1111 at the start of trading on Monday.
Also yesterday, the main Communist Party newspaper said the size of the revaluation last week was determined by China's trade surplus and the ability of its companies to adjust.
The report by the People's Daily added to official comments that the change was based on China's economic needs, not pressure from the US and other trading partners.
"The scope of the 2 percent increase in value was excellent," the People's Daily said.
"This whole scope was determined by our country's trade surplus and needs to adjust, while at the same time considering domestic enterprises' ability to adapt," the paper reported.
It didn't give any more details.
But foreign news reports on Monday said Chinese leaders considered an initial increase of 5 percent in the yuan's value before deciding on 2 percent after lobbying from ministries worried about the impact on China's exporters.
US and other foreign companies say the yuan is undervalued by anywhere from 15 percent to 40 percent, giving Chinese exporters an unfair price advantage. US lawmakers had threatened to impose punitive tariffs if China didn't raise the yuan's value.
People can preregister to receive their NT$10,000 (US$325) cash distributed from the central government on Nov. 5 after President William Lai (賴清德) yesterday signed the Special Budget for Strengthening Economic, Social and National Security Resilience, the Executive Yuan told a news conference last night. The special budget, passed by the Legislative Yuan on Friday last week with a cash handout budget of NT$236 billion, was officially submitted to the Executive Yuan and the Presidential Office yesterday afternoon. People can register through the official Web site at https://10000.gov.tw to have the funds deposited into their bank accounts, withdraw the funds at automated teller
PEACE AND STABILITY: Maintaining the cross-strait ‘status quo’ has long been the government’s position, the Ministry of Foreign Affairs said Taiwan is committed to maintaining the cross-strait “status quo” and seeks no escalation of tensions, the Ministry of Foreign Affairs (MOFA) said yesterday, rebutting a Time magazine opinion piece that described President William Lai (賴清德) as a “reckless leader.” The article, titled “The US Must Beware of Taiwan’s Reckless Leader,” was written by Lyle Goldstein, director of the Asia Program at the Washington-based Defense Priorities think tank. Goldstein wrote that Taiwan is “the world’s most dangerous flashpoint” amid ongoing conflicts in the Middle East and Russia’s invasion of Ukraine. He said that the situation in the Taiwan Strait has become less stable
FRESH LOOK: A committee would gather expert and public input on the themes and visual motifs that would appear on the notes, the central bank governor said The central bank has launched a comprehensive redesign of New Taiwan dollar banknotes to enhance anti-counterfeiting measures, improve accessibility and align the bills with global sustainability standards, Governor Yang Chin-long (楊金龍) told a meeting of the legislature’s Finance Committee yesterday. The overhaul would affect all five denominations — NT$100, NT$200, NT$500, NT$1,000 and NT$2,000 notes — but not coins, Yang said. It would be the first major update to the banknotes in 24 years, as the current series, introduced in 2001, has remained in circulation amid rapid advances in printing technology and security standards. “Updating the notes is essential to safeguard the integrity
REASSURANCE: The US said Taiwan’s interests would not be harmed during the talk and that it remains steadfast in its support for the nation, the foreign minister said US President Donald Trump on Friday said he would bring up Taiwan with Chinese President Xi Jinping (習近平) during a meeting on the sidelines of the APEC Summit in South Korea this week. “I will be talking about Taiwan [with Xi],” Trump told reporters before he departed for his trip to Asia, adding that he had “a lot of respect for Taiwan.” “We have a lot to talk about with President Xi, and he has a lot to talk about with us. I think we’ll have a good meeting,” Trump said. Taiwan has long been a contentious issue between the US and China.
RSS