China Should Consider 'One-Off' Appreciation Of Yuan, Think Tank Says

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China should consider allowing the yuan to rise by 10% in a one-off revaluation against the US dollar before the currency can float in a wider band, a prominent Chinese think tank said on Wednesday.

Zhang Bing, an economist at the Chinese Academy of Social Sciences, wrote in an essay that allowing the yuan to appreciate in a one-off revaluation would not have a detrimental effect on the economy and now was the right time to push forward the yuan exchange rate reform.

The comments come as criticism from China's trading partners has intensified that the Chinese government deliberately undervalues its currency in order to boost exports. However, senior government officials have repeatedly said that they have no intention of bowing to international pressure.

In a separate essay, researchers at the think tank wrote that China's economy likely grew 8.5% in 2009, well above the government's growth target of 8%.

China should consider allowing the yuan to rise by 10% in a one-off revaluation against the US dollar before the currency can float in a wider band, a prominent Chinese think tank said on Wednesday. (Market News Provided by RTTNews)