Corporate foreign exchange news

It is unlikely that the Chinese government will float the yuan on open foreign exchange markets, an influential analyst at Goldman Sachs has warned.Speaking to the Financial Times, Jim O'Neill, chief economist at the investment house, declared: "Maybe in ten years' time, China will say 'We've got this far without floating the currency' and impose a controlled foreign exchange system on the rest of the world."The economist achieved widespread attention and recognition for his Bric growth model, which states that Brazil, Russia, India and China will overtake today's largest economies in the world by 2050.If he is right on his most recent prediction, foreign exchange traders may need to adjust their positions to account for further schisms in purchasing power parity between the yuan and the US dollar.Interest rates rose in China this morning amid speculation that the country will begin to scale back its economic stimulus programme.