Shanghai’s foreign-exchange market should control price setting for China’s yuan, Zhang Jianhua (張建華), director of the research department at the People’s Bank of China (PBOC), said yesterday.
“We should develop Shanghai’s foreign-exchange market to match expansion of yuan use overseas,” Zhang said at a conference in Shanghai. “We should try to control price setting. Strong growth in an offshore yuan market might influence the currency’s onshore price.”
China is seeking to allow the yuan to rise to appease foreign criticism, while protecting exports and preventing a further slowdown in economic growth.
China should seek to expand convertibility of the yuan, which would help to build Shanghai into a global financial center, Zhang said at the conference held by the International Finance Research Institute of Shanghai Finance University. The Shanghai market should expand trading of yuan forwards and swaps, and introduce options and swaps at an appropriate time, he added.
The People’s Bank of China said on Thursday it may start to publish the yuan’s exchange rate measured against a basket of currencies rather than just the dollar. It will help shift the market’s attention away from the rate against the dollar, central bank Deputy Governor Hu Xiaolian (胡曉煉) said in a statement on the agency’s Web site.
The yuan’s effective exchange rate “should gradually become a reference” for policy, she said.
The yuan has gained 0.7 percent since the central bank said on June 19 it would allow greater flexibility in the exchange rate, ending a two-year dollar peg.
‘ABUSE OF POWER’: Lee Chun-yi allegedly used a Control Yuan vehicle to transport his dog to a pet grooming salon and take his wife to restaurants, media reports said Control Yuan Secretary-General Lee Chun-yi (李俊俋) resigned on Sunday night, admitting that he had misused a government vehicle, as reported by the media. Control Yuan Vice President Lee Hung-chun (李鴻鈞) yesterday apologized to the public over the issue. The watchdog body would follow up on similar accusations made by the Chinese Nationalist Party (KMT) and would investigate the alleged misuse of government vehicles by three other Control Yuan members: Su Li-chiung (蘇麗瓊), Lin Yu-jung (林郁容) and Wang Jung-chang (王榮璋), Lee Hung-chun said. Lee Chun-yi in a statement apologized for using a Control Yuan vehicle to transport his dog to a
Taiwan yesterday denied Chinese allegations that its military was behind a cyberattack on a technology company in Guangzhou, after city authorities issued warrants for 20 suspects. The Guangzhou Municipal Public Security Bureau earlier yesterday issued warrants for 20 people it identified as members of the Information, Communications and Electronic Force Command (ICEFCOM). The bureau alleged they were behind a May 20 cyberattack targeting the backend system of a self-service facility at the company. “ICEFCOM, under Taiwan’s ruling Democratic Progressive Party, directed the illegal attack,” the warrant says. The bureau placed a bounty of 10,000 yuan (US$1,392) on each of the 20 people named in
INDO-PACIFIC REGION: Royal Navy ships exercise the right of freedom of navigation, including in the Taiwan Strait and South China Sea, the UK’s Tony Radakin told a summit Freedom of navigation in the Indo-Pacific region is as important as it is in the English Channel, British Chief of the Defence Staff Admiral Tony Radakin said at a summit in Singapore on Saturday. The remark came as the British Royal Navy’s flagship aircraft carrier, the HMS Prince of Wales, is on an eight-month deployment to the Indo-Pacific region as head of an international carrier strike group. “Upholding the UN Convention on the Law of the Sea, and with it, the principles of the freedom of navigation, in this part of the world matters to us just as it matters in the
The High Court yesterday found a New Taipei City woman guilty of charges related to helping Beijing secure surrender agreements from military service members. Lee Huei-hsin (李慧馨) was sentenced to six years and eight months in prison for breaching the National Security Act (國家安全法), making illegal compacts with government employees and bribery, the court said. The verdict is final. Lee, the manager of a temple in the city’s Lujhou District (蘆洲), was accused of arranging for eight service members to make surrender pledges to the Chinese People’s Liberation Army in exchange for money, the court said. The pledges, which required them to provide identification
RSS