Chinese Yuan Advances To Record Exchange Rate

[B]The Chinese Yuan [/B]accelerated on the session, setting its highest close since the abolishment of the fixed peg system back in 2005. Rising to trade at 7.7100 against the US dollar, the yuan’s gains were a simple reflection of the weighted average of regional currencies that the country’s central bank refers to. The fact that the currency continues to trade at such record levels further bolsters recommendations by banks and global financial institutions that the underlying spot be allowed to freely float. In the least bit, at least a heavy weighted consideration by policy makers of a widened band should be tested. Incidentally, the appreciation in the yuan would help to increase the price of exports and decrease the price of import. Both notions would help in reducing the current trade surplus and potentially the rampant 3.3 percent inflation currently plaguing the country.
[B][/B]
[B]Canada[/B][B] [/B]is surprisingly set to join recent WTO complaints posted by the US on China’s lax piracy laws. Also arguing that policy officials remain soft against violators of trademark infringement, Canadian Trade Minister David Emerson has decided to join “as a third party so we can learn a little bit more about what the Chinese are doing.” Emerson additionally told reporters that Japan may be ready to “join the fray” as concerns over intellectual property rights will more than likely place increased pressure on the Chinese government to further revise legislation.