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Yuan may be Revalued by October

A Security Company in Beijing said they believed that Chinese officials would revlaue the yuan a tiny bit between June and October. China might revalue the yuan again, as it did by 2.1 percent against the dollar in July 2005; and China might also widen the yuan's daily trading band against the dollar, they said. But the economists added that any revaluation would be small, with cumulative appreciation in 2010 of 3 percent.

Treasury Secretary Timothy Geithner was in China this week and it brought on heavy speculation that Washington is presenting a case for China to revalue the yuan or it will release a report of China as a currency manipulator. This may be an indirect rumor and nonetheless China has been dropping hints that it is preparing to abandon its de facto dollar link.

Xia Bin, a recently appointed member of the central bank's monetary policy committee, said China should return to its pre-crisis way of managing the yuan as soon as possible. Xia said that a big rise in the yuan would harm the global economy and U.S. consumers, but speculators believe that goods from China will actually rise minimally and that the Chinese government will simply subsidize their manufacturers.