Yuan likely to stay firm against dollar
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The yuan is likely to be firm against the US dollar as China will keep a stable exchange rate and the Chinese central bank will continue to tighten liquidity, analysts said.
The yuan ended up against the US dollar at 6.8269 on February 12, according to the China Foreign Exchange Trade System. The yuan closed at 6.8272 on February 5. The market was shut last week for the Spring Festival.
"The yuan is likely to remain stable against the dollar in the next few weeks, and whether the US will make changes in monetary policies will depend on Federal Reserve Chairman Ben Bernanke's speech at the US Congress on Wednesday," said Li Gang, an analyst at the Agricultural Bank of China.
The People's Bank of China said on February 12 that bank reserve ratio will be raised to 16.5 percent on Thursday, the second rise this year.
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