State think tank: No reason for rapid yuan rise

The State Information Center, a government think tank, argued that there is no reason for a sharp rise in the value of the renminbi, the Dow Jones Newswires reported, citing the China Securities Journal. The think tank also argued that the current trial program of settling cross-border exchange using the yuan should be expanded to internationalize the currency, but that the government should monitor movements in the currency’s value to prevent an influx of speculative ("hot") money. The yuan was effectively de-pegged from the US dollar on June 19, but appreciation over the past month has been slow. The People’s Bank of China (PBoC) recently announced plans to publish the value of the yuan against a basket of currencies.