China takes preventive measures at the rate of the yuan

Chinese authorities continue to revalue the currency.

According to the expert, the People’s Bank of China on Wednesday set a reference rate of the yuan against the dollar at the highest level – 6.2670 compared with 6.2787 yuan on Friday.

China continues to revalue its currency, and a revival of activity in this matter can be directly related to the visits of U.S. policymakers in Beijing these days (U.S. Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner): The U.S. has long lobbied the idea of quick rise in the value of Chinese currency.

Previously, a number of Western countries, particularly the U.S., constantly putting pressure on China, requiring Chinese authorities to accelerate the process of yuan’s revaluation (appreciation). Beijing, in turn, announced that it will continue the gradual reform of the exchange rate mechanism of its currency, but will not allow the external pressure on this issue.

Because of the undervaluation of yuan, which Washington accuses Beijing, the U.S. faced difficulties in exporting products to China. Chinese companies, on the contrary, became more profitable to sell goods in the U.S..

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