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|Exporters diversify away from U.S. dollar
June 30 -- Domestic exporters are increasingly seeking to settle their trade in
currencies other than the U.S. dollar to hedge against fluctuations in the yuan,
the International Business Daily reported Thursday.
|Photo taken on March 2, 2006 shows the
10-dollar notes the United States issued on the same day. Chinese
exporters are increasingly seeking to settle their trade in currencies
other than the U.S. dollar to hedge against fluctuations in the yuan, the
International Business Daily reported Thursday. (Xinhua
Citing a survey by the central bank, the paper said a
growing number of businesses in key manufacturing provinces, including Fujian
and Guangdong, were using non-dollar currencies to make settlements.
The paper cited a number of managers with exporting
companies as saying that because they were used to using dollars and because of
the smaller trading band for the dollar as compared with other currencies, they
would continue to rely mainly on it, while experimenting with other currencies.
The paper cited Mei Xinyu, a researcher at the
Commerce Ministry, as saying that exporters needed to start using more
currencies other than the dollar to carry out pricing and payment, to cope with
the uncertainties further yuan flexibility brought with it.
Mei suggested that companies expand their procurement
of materials abroad, and even transfer some of their operations to other
countries to minimize the impact of currency fluctuations.
(Source: Shenzhen Daily)