China loosens the leash on its currency

The Globe and Mail

April 16, 2012

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In a shift that could lead to a reshaping of the global economy, China’s government has loosened the tether on its currency, signalling the determination of the country’s leaders to make the yuan a rival to the U.S. dollar.

Starting Monday, the People’s Bank of China will allow the value of the Chinese currency to rise or fall by 1 per cent from the price it sets at the start of each trading day, compared with 0.5 per cent previously. The change was announced late Friday on the central …

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