Yuan seen to stay within close range
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The yuan is likely to remain in a close range against the US dollar in the short term after the central bank said China will adopt a cautious stance toward exchange rate policies.
The Chinese currency edged up against the greenback last week and ended at 6.8266 last Friday, according to the China Foreign Exchange Trade System. The yuan closed at 6.8269 at the end of the previous week.
The governor of the People's Bank of China, Zhou Xiaochuan, said at the annual session of the National People's Congress on Saturday that the government will be prudent in exiting from its stimulus measures, including the exchange rate policy.
He also reiterated Premier Wen Jiabao's stance in the government working report that the yuan will be kept basically stable.
China has kept the yuan at around 6.83 against the US dollar for almost two years to help the country's export-oriented manufacturers.
Commerce Minister Chen Deming said on Saturday "it could take two to three years for China's exports to recover to the 2008 level."
