Stiglitz Says Wider Yuan Band May See Chinese Currency Weaken
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China’s decision to widen the yuan’s trading band for the first time since 2007 may end up disappointing the U.S. by helping to weaken the currency, Nobel laureate Joseph Stiglitz said.
China today said it will increase the range in which the yuan can trade to 1 percent from 0.5 percent. While the currency reached an 18-year high at 6.2884 per dollar on Feb. 10, President Barack Obama’s administration has said it remains too weak and gives an unfair trading edge to China’s exporters.