Central bank details currency basket
11 August 2005
China's central bank said Wednesday the main components of the currency basket it started using under its new exchange-rate regime to manage the yuan are the US dollar, euro, yen and South Korean won. The bank did not reveal the weights of currencies against which the yuan is linked. The currencies and their relative weight are based on the importance of China's trading partners, including countries and regions, according to the People's Bank of China governor Zhou Xiaochuan. "Those with annual trade volume of more than US$10bn are very important, and those with volume above US$5bn can't be neglected either,'' Zhou said.
