China would benefit from floating yuan

SHANGHAI – China would benefit from allowing its currency to be traded more freely, Canadian Trade Minister Peter Van Loan said yesterday.

‘It is always better for a currency to float freely in the marketplace. For China, there will be tremendous benefits for the currency to float freely,’ Van Loan told reporters in Shanghai.Van Loan said a more flexible currency would help China’s case in asking to be treated as a market economy by its trade partners.China is under pressure from trade partners to unshackle the yuan from a de facto dollar peg in place since mid-2008, which they say gives it an unfair advantage in global trade. – Nampa-Reuters