November 8, 2007 (LPAC)--A report compiled by the Industrial and Commercial Bank of China (ICBC) predicted that the appreciation of the Chinese currency would accelerate, according to Thursday's People's Daily.

The report published Wednesday on the China Securities Journal stated that the recent interest rate reduction in the United States would cause the yuan to further appreciate.

On Wednesday, the yuan broke a new high of 7.45 mark to the dollar; this was the 68th new high the yuan had recorded since the start of this year, a four percent rise accumulatively.

"We should not only focus on the foreign exchange rate fluctuation in one single day, but keep a close eye on the long-term trend," Dr. Ou Minggang, Director of International Finance Research Center under China Foreign Affairs University, told Xinhua, the China news agency.

"The U.S. dollar has depreciated more than 40 percent compared with the euro, while the yuan has only appreciated around 10 percent since July 2005. It is possible for the yuan to further appreciate." Implying or warning of a further 30% appreciation of the yuan against the dollar.

In another article, the People's Daily acknowledges and confirms the remarks of Cheng Siwei, vice chairman of the Standing Committee of the National People's Congress. Those remarks, which as reported in the Western press, are "blamed" for much of yesterday's swoon in the dollar's value, was that “We [China] will favor stronger currencies over weaker ones, and will readjust accordingly,” i.e., diversify from the dollar into other currencies.