Thursday, 8 February 2007

China's trade surplus at $15.5bn

The strength of the yuan is a continuing cause of concern. More on this in subsequent posts.

Trade surplus of US$15.5b
China will probably post a US$15.5 billion trade surplus in January, pumping more cash into the economy and fueling speculations that the yuan will get stronger.

The gap narrowed from US$21 billion in the previous month, according to the median estimate of 20 economists surveyed by Bloomberg News. Exports probably rose 25 percent in January from a year earlier and imports gained 16.4 percent. China's surfeit of exports over imports has flooded the economy with cash. The yuan has climbed 4.3 percent against the US dollar since China scrapped a decade-long peg in July 2005, revalued it by 2.1 percent and allowed it to trade against a basket of currencies.

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