China's central bank has insisted that a revaluation of its currency against the dollar is not the first in a coming series of incremental steps to the yuan's value.
'Some foreign media have misunderstood the content of the foreign exchange reform, with some even thinking that the 2.1% is just an initial adjustment,' it said in a statement on its website.
It said that the decision to revalue, substantially below market expectations and the 10% sought by the US Treasury, was based on China's trade surplus and 'structural adjustments'.
The statement appeared aimed at cooling already building speculation that China would have to make another move soon, which in the near team will heighten the flood of 'hot money' or speculative capital racing into the country.
