Yuan peg relaxation in 2004?

"We are penciling in a widening of the yuan’s band for the second half of next year, but obviously the current political relationship between the US and China will play an interesting part in this," said Tai Hui, global markets economist at Standard Chartered in Hong Kong. "If the US continues to be very hostile on the trade front and impose quotas and tariffs, then the Chinese could easily say: ‘you’ve already done your bit to curb the imports, so we’re not going to relax the exchange rate’

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