Yuan no longer a one-way bet

Financial overhauls under way are likely to redefine China's growth model and reverberate in economies beyond its borders, reports NEIL GOUGH

[HONG KONG] ONE of the surest bets on China is starting to look a bit shaky. For the past nine years, each business day at 9 in the morning, government workers in the blandly named Building No 30 in Shanghai's Pudong district have published a benchmark number that tells the world what their country's currency will be worth that day, when compared with the US dollar.

More often than not, the staff of the China Foreign Exchange Trade System has assigned a value to the currency, the renminbi, slightly stronger than it had finished the previous day. Thanks to the guiding hand of the Chinese state, the renminbi today is about 25 per cent stronger than it was in July 2005, when China scrapped the currency's...

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