China makes major shift on currency | csmonitor.com: "World > Asia Pacific

from the July 22, 2005 edition

China makes major shift on currency
By Ron Scherer and Amelia Newcomb | Staff writers of The Christian Science Monitor

NEW YORK AND BEIJING
In a move that could eventually affect everything from the price of T-shirts in Wal-Mart to the mortgage rates Americans pay, China is moving in the direction of a more flexible currency.


The change, like many things that happen in China, will be gradual and managed. In fact, initially, the Chinese currency will increase in value by only a little over 2 percent. But the Chinese are now committed to letting their currency, the yuan, join the ranks of the other economic powerhouses, Europe and the US, over time."