Wu Xiaoling, deputy governor of China’s central bank, said that an appreciation of the yuan cannot be taken for granted. Wu said that that Chinese businesses should learn to better manage their foreign currency risks as the currency could fluctuate either way, given the uncertainties facing the economy. In July last year the Chinese government scrapped the yuan’s peg to the dollar, linking it instead to a basket of currencies and allowing it to float within a managed band. The currency has appreciated 3.5% since then.
Brazil’s ethanol exports are projected at some 3.5 billion litres for 2006/2007, up 35% on the year according to the country’s sugar cane industry union. The increase is based on higher demand from the United States,, the main importer of Brazilian ethanol. Brazil exported 500 million litres of ethanol in July 2006 alone, of which 84% went to the US. The country produces about 17 billion litres of ethanol a year and domestic consumption is between 13 and 14 billion litres.
The Indonesian government said it might increase the size of its first ever retail bond issue. The government has received application worth 3 trillion rupiah for the 2 trillion rupiah issue.The Finance Ministry's head of treasury, Mulia P Nasution said that if all orders are confirmed the government might take up all of them to meet market demand.
Poland’s 2006 budget deficit is likely to come in at below 30 billion zloty, compared to a target of 30.6 billion zloty, according to Finance Minister Stanislaw Kluza. Better-than-expected GDP growth of 5% is the reason for the good result.