China today revalued its currency. The reform is seen as the first step towards the “liberalisation of China's tightly controlled currency”, the BBC reported. The Yuan, instead of being pegged to the Dollar, is now tied to a “basket of other currencies” said CNN. Many have thought the peg to the Dollar undervalued the Yuan. China's currency had been pegged at 8.28 against the dollar, but the new move effectively strengthens it by 2.1%, to 8.11 to the dollar. On the street prices will be cheaper in China itself, while goods exported will increase in price throughout the west. The stock market fell briefly in the US, but Euro markets rallied with possible increased exports to China, resulting from a more competitive market place. Other financial news from China as shares climbed in the Chinese oil industry, Bloomberg News reported.
[21:51 GMT 21/07/2005]
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