SteelOrbis Shanghai
Chinese Prime Minister Wen Jiabao said that they would allow RMB to move more flexibly with more volatility either up or down, according to the changes in the market.
According to Wen,
China does not need to take one-off administrative measures on RMB anymore, but RMB can be permitted to fluctuate in a wider range.
Due to the depreciation in
US Dollar value,
China obligatorily set RMB free to float in a 3 percent up or down range in July. At that time, $1 was equal to RMB 8.28. Today $1 is equal to RMB 8.04.
Chinese President Hu Jintao will visit the United States in late April. The
US-
China trade gap and RMB are expected to constitute a major part of the agenda during the visit.
Today RMB recorded its biggest one-day gain against the
US Dolar since its July revaluation, following the Chinese Prime Minister's fluctuation announcement yesterday.