💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Yuan moves not affecting farm trade - USDA chief

Published 12/06/2008, 01:53 AM
Updated 12/06/2008, 01:55 AM

By Rujun Shen

SHANGHAI, Dec 6 (Reuters) - Recent fluctuations in the yuan's exchange rate against the dollar are not having a big impact on U.S.-China agricultural trade, U.S. Secretary of Agriculture Ed Schafer said on Saturday.

After rising sharply against the dollar in the first seven months of this year, the yuan, whose exchange rate is controlled by China's central bank, remained flat for four months and then fell to a five-month low in December.

That has prompted speculation in the foreign exchange market that China may engineer a moderate depreciation of its currency to try to revive flagging exports.

But Schafer, visiting Shanghai after taking part in U.S.-China economic talks this week, said farm trade between the two countries "continues to be strong" and that the exchange rate was not so far a threat.

"Right now we don't see it being a huge factor in affecting agriculture trade between our two countries," he told reporters.

"The conversations we had at the Strategic Economic Dialogue were based on free market value of our currencies, and what we see around the world is when countries try to manoeuvre their currencies or set artificial values, it just doesn't work in the long run.

"So China's been very good about allowing that appreciation to happen, and we'll have to see where it goes."

China this month resumed importing U.S. high-quality wheat following a year of almost no imports, as falling U.S. wheat prices and freight rates made imports attractive.

"I believe that is an example of how our global trading of wheat will continue to increase," Schafer said. (Editing by Andrew Torchia & Jan Dahinten)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.