Yuan vs US Dollar 2012

By Kim Young-gyo

The Chinese yuan surged to a new high against the U.S. dollar on Friday, a development seen as amicable to the U.S., which has been demanding the appreciation of the Chinese currency.

According to the central People’s Bank of China, the yuan’s central parity rate was set at 6.2937 against the greenback, the highest since July 21, 2005, when China abandoned a decade-old peg against the greenback and shifted to a managed floating exchange rate.

The rate renewed its record high of 6.3001 on Jan. 4.

The appreciation occurred ahead of Chinese Vice President Xi Jinping’s scheduled to visit to the U.S. next week.

Xi will meet U.S. President Obama at the White House on Tuesday.

Meetings with Vice President Joseph Biden, Secretary of State Hillary Clinton, Defense Secretary Leon Panetta and leaders of both houses of Congress are also scheduled.

The U.S. has said that China has been artificially lowering the value of the yuan, giving its exporters an unfair advantage in overseas markets. China has continuously resisted such arguments.

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