chinese currency

China blames markets for weak renminbi

China's weakening trade surplus is driving down the value of the renminbi, which is exactly what you would expect from a market-based currency, say government officials.
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The renminbi's value against the dollar can go down as well as up, says China (AFP)
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<div style="text-align: left;"> The renminbi's value against the dollar can go down as well as up, says China (AFP) </div>

The renminbi’s fall against the dollar during the past few days is the result of a weakening trade surplus and shows that the currency is market-based rather than being manipulated by the government, Chinese officials said yesterday.

Calling the fall a “good thing”, Chong Quan, China’s deputy international trade representative, said at a Ministry of Commerce press briefing in Beijing that the decline proved its critics wrong. Xinhua News agreed, saying in a news analysis that the falling renminbi is a normal market response to the change in China’s balance of trade.

The trade surplus of the world’s biggest exporter dropped 36% in October year-on-year. The broader...

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