Peru applauds revaluation of Chinese yuan

The Peruvian authorities welcomed Friday the appreciation of the Chinese currency, yuan, saying this will benefit this Andean country's exports.

Exports Commission (ComexPeru) director Patricia Teullet said the revaluation was a "good sign" and a more truthful embodiment of "the concept of a market economy."

Director of Economic Studies of BBVA-Continental Bank, David Tuesta, said that the revaluation of the yuan will not damage Peru's mining, agricultural and fishing exports to China.

"The revaluation of the Chinese currency will help add competitiveness to Peru's non-traditional products, mainly textiles, which compete with their Chinese counterparts abroad," said he.

Macroconsult director Ilmer Cuba said "the revaluation is the Chinese yuan's response to protectionist groups of the United States" as the value of the yuan will hereafter be defined with respect to a selection of foreign currencies including the US dollar, the Japanese yen and the euro.

The People's Bank of China, China's central bank, announced it would trade its currency at a rate of 8.11 to the US dollar starting 19:00 (1100 GMT) Thursday, and the yuan to US dollar pegging system is switched to its tie to a basket of foreign currencies.

Over the past few years, the Chinese yuan has been pegged to the US dollar at the rate of one dollar for 8.27 yuan.

The move was widely applauded by countries, especially the industrialized ones, around the world.

Source: Xinhua