China to value yuan against basket of currencies By Steve Goldstein
LONDON (MarketWatch) -- The People's Bank of China said it'll dropping its yuan-dollar peg in favor of one vs. a basket of currencies. The daily trading price of the dollar vs. the yuan will continue to be allowed to float within a band of 0.3%, while the trading prices of non-U.S. dollar currencies will be allowed to move in yet-to-be announced bands. "The People's Bank of China will make adjustment of the RMB exchange rate band when necessary according to market development as well as the economic and financial situation. The RMB exchange rate will be more flexible based on market condition with reference to a basket of currencies," it said.
7:11am 07/21/05 YEN UP 0.9% VS U.S. DOLLAR; ONE DOLLAR AT 111.69 YEN
7:10am 07/21/05 CHINA: YUAN MORE FLEXIBLE BASED ON CURRENCY BASKET
7:09am 07/21/05 CHINA TO SET RATE TO 8.11 YUAN PER DOLLAR ON THURSDAY