Yuan will continue gradual ascent: currency watchers

Hong Kong

TEN years after China scrapped a yuan peg against the dollar, the central bank is again anchoring the exchange rate to the greenback. Witnesses to the 2005 float say too much has changed for that to last.

The economy is now five times bigger, having overtaken Japan and Germany, and the yuan has risen to become the world's second most-used currency for trade finance. Currency watchers of the time, including UK government official Jim O'Neill and ski gear entrepreneur Benedikt Germanier, say the yuan will sustain its gradual ascent. While it has appreciated 34 per cent since the 8.3 per dollar peg ended, it's in the fifth month of a pause at 6.2.