China Has Done ‘Majority’ of Yuan Gains, Market News Reports

By Kim Kyoungwha

Dec. 22 (Bloomberg) -- China has implemented the “majority” of the yuan appreciation needed to address the artificially weak exchange rate brought about by its dollar peg, Market News International reported, citing a central bank official in charge of foreign exchange.

Zheng Hong, director of the exchange rate policy office with the People’s Bank of China, said at a trade conference in Beijing over the weekend that the yuan has shown “a pretty big increase” and China has “corrected the majority of the imbalance of the past,” according to the report.

The yuan has strengthened 21 percent to 6.8432 since a fixed exchange rate ended in July 2005.

To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net;