China to drop dollar peg “sooner or later”: Zhou

Chinese currency

Zhou Xiaochuan, the governor of the People's Bank of China, said on Saturday the country would have to exit its dollar peg at some stage, stirring speculation that it was set to let its currency appreciate.

Speaking to the press following the annual meeting of the National People's Congress, China's legislative house, Zhou said: "This [the dollar peg] is part of our package of policies for dealing with the global financial crisis. Sooner or later, we will exit the policies."

The renminbi operate

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