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Yuan Closed Flat Against US Dollar Due to China's Strong Export
China's yuan closed flat against the US dollar for a third straight day Wednesday, drawing support near the firm end of its usual trading band from the country's strong exports, dealers said.

The yuan closed at 8.2767, unchanged from both Monday's and Tuesday's finishes, after trading in a narrow range of 8.2766 to 8.2768. Turnover was a healthy US$490 million after Tuesday's brisk US$570 million.

"Trade was quite active today. China's exports have been pretty strong and that has lent support to the yuan," said a dealer at a State-owned bank in Beijing.

China keeps a tight rein on the yuan, saying a stable currency is key to macroeconomic policy.

Dealers said they expected the yuan to stay near 8.2770 - the strong end of the 8.2760 to 8.2800 range which the central bank enforces - due to the country's rosy trade surplus.

"China's trade surplus has been growing and the yuan will likely stay on the firm track," the dealer said.

China's strong exports are driving the trade surplus and the country's robust economic growth, despite a sluggish global economy. The State Statistical Bureau said yesterday that China's economy would grow around 7.8 percent this year.

(china.org.cn October 17, 2002)

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