BEIJING WIDENS RENMINBI BAND AND RAISES INTEREST RATES

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China on the 18th May announced a widening of the renminbi's daily trading band against the dollar, just days before Beijing ministers head for the US for a meeting at which their management of the allegedly undervalued currency will be a focus of discussion.

The central bank also announced rises in both interest rates and bank reserve requirements, the latest in a series of such moves intended to help tame liquidity growth and cool soaring domestic share prices.

The People's Bank of China's decision to widen the daily trading limit to 0.5 per cent has no direct implications for the renminbi's level against the dollar, since the currency has rarely come close to testing the 0.3 per cent limit set in 2005.

The central bank insisted the move was merely a step in its gradual reform of the exchange regime and not a prelude to more dramatic action on a currency that critics say Beijing has long kept undervalued in order to support exporters.

\"(The widening) is a institution-building step. It certainly does not signify that there will be great volatility in the renminbi exchange rate, even less does it signify that there will be a large appreciation,\" the bank said.

However, the move will allow Chinese leaders to argue they are improving the exchange rate regime when they meet US counterparts in the US next week for the second round of a \"strategic economic dialogue\" inaugurated last year.

The US gave a cautious welcome to the news, which was seen by some observers as a gift to Hank Paulson, the US Treasury secretary, who has made improving US-China economic relations a top policy priority.




中国于5月18日宣布扩大每日银行间即期外汇市场人民币兑美元交易价波动幅度。就在几天后，中国政府一些部级官员将前往美国出席一次会议，其间，他们对所谓被低估的人民币汇率的管理，将成为讨论的焦点。

中国央行同时宣布上调人民币存贷款基准利率和金融机构存款准备金率。这是中国为了抑制流动性增长，冷却日益飙升的国内股价而采取的最新举措。

中国人民银行(People's Bank of China)将银行间即期外汇市场人民币兑美元交易价日浮动幅度扩大至0.5%的决定，与人民币兑美元汇率没有直接联系，因为人民币波动幅度很少接近2005年设定的0.3%的上限。

中国央行坚称，此举只是实现人民币汇率机制渐进式改革的一个步骤，并非预示着人民币会大幅波动，批评人士称，中国政府长期以来一直压低人民币汇率，以支持出口商。

中国央行表示：“扩大银行间即期外汇市场人民币兑美元汇率浮动区间是进一步完善人民币汇率形成机制的一项制度性建设措施，并不意味着人民币汇率大幅波动，更不意味着大幅升值。”

然而，此举将使中国领导人于本周在美国参加第二轮“战略经济对话”时，可向美方谈判人员辩称，他们正在完善人民币汇率机制。美中战略经济对话于去年启动。

美国对于上述消息表示了谨慎欢迎，一些观察人士认为，这是给美国财政部长汉克•保尔森(Hank Paulson)的一件礼物，保尔森已将改善美中经济关系作为一项政策要务。