China unshackles yuan ahead of G20
China's yuan surged on Monday the most since its revaluation in 2005, sending a clear signal ahead of this weekend's G20 summit that Beijing is sticking to its word of allowing greater currency flexibility.
The central bank has maintained the peg since the middle of 2008, a controversial policy aimed at steadying the world's fastest-growing major economy during the global economic downturn.
But the central bank stepped aside on Monday to back up its surprise weekend announcement that it would allow greater flexibility for the yuan, buying some time against Western critics who argue the currency is undervalued and gives China an unfair advantage in world trade.
After the People's Bank of China (PBOC), the central bank, set the daily reference point for trading, the yuan rose by 0.45 percent to as high as 6.7969 per dollar -- the biggest intraday rise since China revalued the currency in 2005. >>
