"The attempt to stabilize the Chinese National currency at 8d or 84d has been abandoned," declares the "Financial News" in an article today dealing with the break in the Chinese dollar.
The Stabilization Fund, it says decided yesterday to allow exchange to find its natural level. No effort will be made, it continues, to peg the exchange again until there is good reason to believe it has reached a level at which it can be easily defended.
The decision to allow exchange to fall was taken in view of the deter-loration of China's trade balance, and the recent big capital efflux.
This caused heavy inroads into the £5,000,000 reserves of the Stabilization Fund, although, the "Financial News" goes on, there is no truth in the suggestions that these resources have been nearly exhausted.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.