China Scraps Yuan Peg to the US Dollar
SHANGHAI, July 21 (Reuters) - China scrapped the yuan's peg to the U.S. dollar on Thursday and tied it to a basket of currencies, the central bank said, the first steps in highly anticipated reforms aimed at letting the currency float freely.
The new yuan rate versus the dollar revalues the currency by 2.1 percent, to 8.11 per U.S. dollar as of 1100 GMT, the central bank said on its Web site (www.pbc.gov.cn).
Under the previous policy, the yuan was kept near 8.28 per dollar, a virtual peg that had led the United States and other countries to complain that China's currency was unfairly undervalued
posted by Doc @ 7:28 PM
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As a consequence of China scrapping the yuan's peg to the US$, Ringgit Malaysia is unpegged with immediate effect. Woh, will have a stronger buying power oversea.
The Star Online > Nation
Thursday July 21, 2005
Malaysia scraps ringgit's peg to dollar, moves to a managed float
News Update by The Star Newsdesk
KUALA LUMPUR: Malaysia has scrapped the ringgit currency’s seven-year-old peg to the dollar and will move to a managed float, pegged to a basket of currencies, with immediate effect, said Bank Negara governor Datuk Zeti Aziz.
"We will be pegged to a currency basket. It will have a positive effect on the economy. “We will allow the currency to reflect our fundamentals. It will remain not too far from the current value because it already reflects our fundamentals,” she added.
Zeti had showed up at PWTC to meet Prime Minister Datuk Seri Abdullah Ahmad after the closing of the first day of the general assembly.
The move by Malaysia follows China’s decision to re-peg the yuan to the US dollar from 8.28 to 8.11.
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