Zhang Bin, a researcher at the Chinese Academy of Social Sciences (CASS), has encouraged Chinese officials to consider a one-time 10% appreciation of the renminbi’s value against the dollar, Bloomberg reported. The move, suggested as a means to reduce speculative inflows of capital, would be accompanied by a 3% annual limitation on the appreciation or depreciation of the currency relative to the dollar. While Zhang could not predict whether the government would accept his advice or allow the currency to appreciate from its current value of approximately RMB6.83 to the dollar, he stated that a 10% revaluation would not seriously impact export growth and that China should take an "active strategy" to reduce the threat from short-term capital inflows.
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