China may put eggs in a different basket

david derosa

The yuan could soon be measured against 10 currencies and not solely the US dollar

China may be going down the basket route.The world's fastest growing economy may alter its fixed exchange rate regime by pegging the yuan to a basket of 10 currencies, rather than solely to the US dollar, according to a report in China Business Post that cited unidentified people at the nation's central bank. This looks like a big step, although all it really demonstrates is that Chinese officials recognise they have some hard decisions ahead on their currency. The Post report towards the end of 2003 said that if China were to move to a basket approach, the component currencies would be we...