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Text your say: Yuan flexibility
Your comment on the move by China’s central bank, which promised to add flexibility to the yuan after pegging it to the dollar for nearly two years Finally, China has agreed to change its yuan pegging rate to floating rate because its real exchange rate is undervalued about 40 percent against the US dollar
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strong>Your comment on the move by China’s central bank, which promised to add flexibility to the yuan after pegging it to the dollar for nearly two years
Finally, China has agreed to change its yuan pegging rate to floating rate because its real exchange rate is undervalued about 40 percent against the US dollar. The reevaluation of yuan is positive news for the global economy including Indonesia.
They can catch up on an opportunity in China’s markets and it is hoped part global investment funds would channel in to developing countries. For Indonesia, the yuan reevaluation seems to be a likely insignificant benefit. At present the yuan is reevaluated step by step around 0.4 to 0.7 percent.
For Indonesia, the important thing is how to overcome its economic problems such as the high cost economy, bad infrastructure, the bank loan’s higher interest rate, the labor problem etc. If Indonesia can solve the above problems, we believe the companies would improve their efficiency and productivity so that they have the ability to create competitiveness in global trade.
Abdul Rahim
Tangerang, Banten
