Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


    December 31, 2011

China Hints at Loosening Exchange Rate

   VOA News
   People's Bank of China governor Zhou Xiaochuan (file photo)
   Photo: AP
   People's Bank of China governor Zhou Xiaochuan (file photo)

   China's central bank governor hinted Saturday that the exchange rate
   for country's currency - the yuan - could be loosened in the near
   future.
   In an interview with the weekly magazine Caixin, Zhou Xiaochuan,
   governor of the People's Bank of China, said the bank was close to
   reaching its goal of allowing the yuan to be converted at
   market-determined exchange rates.
   Beijing's trading partners, including the United States, have long
   criticized its exchange rate, saying it is kept artificially low,
   causing massive trade deficits between some countries and China.
   On inflation, Zhou said the outlook has improved and the task of
   keeping prices down would not be as urgent in 2012.

   Some information for this report was provided by AP and Reuters.

.