The Chinese renminbi posted its first annual decline this year since 2005, dipping 1 percent to 6.3676 versus the U.S. dollar. The currency had gained nearly 22.3 percent from July 21, 2005 — when the Chinese government abandoned the currency’s 8.11 peg to the greenback and allowed it to trade within a designated band — to the end of 2011.
Analysts say the falling yuan reflects a slowing economy, and further loosening of the exchange rate system will likely trigger further weakness, rather than strength, in the currency.
via CNBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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