Revaluation of Yuan benefits India, Indian Commerce Minister

India said Friday the revaluation of the Chinese Yuan would benefit its exports as it would make the prices of Chinese goods more realistic and provide level-playing field for Indian exporters on global markets.

According to Indian Commerce Minister Kamal Nath, the real impact would be known after seeing the implementation and knowing with which currency basket they (Chinese) peg Yuan in the next few weeks.

Asking whether the reserve bank of India should intervene to manage the impact of the revaluation, he said that India rupee takes its own course and it was for the finance ministry to handle.

China decided to reform the exchange rate regime by moving into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies.

In a historic move, China Thursday revaluated its currency Yuan and de-linked it from US dollar.

Source: Xinhua