China May Reform Its Currency as Exports Surge Again

(Press Trust of India)

China’s exports surged by 48.5 per cent year on year in May, triggering speculation that the much awaited reform of its currency Yuan against the US dollar is round the corner. Imports too climbed 48.3 per cent, China’s General Administration of Customs (GAC) announced on June 10.

In value terms exports totalled $131.76 billion in May, while imports totalled $112.23 billion.

The US and the EU accuse China of making windfall profits out of its exports by pegging its currency deliberately low that makes its exports cheaper. […]

Chinese President Hu Jintao promised reform during last month’s US China Strategic and Economic Dialogue, which was expected to be implemented in a gradual manner.

Economists said the reforms are likely to coincide with the forthcoming G20 summit on June 26-27 in Toronto, Canada and would be implemented on a gradual basis rather than a one-off revaluation, state run China Daily reported on June 10. Read more here.