Argentina clears off entire IMF debt of US$9.5bn
Buenos Aires: Tapping its international reserves, Argentina paid off its US$9.5bn debt to the International Monetary Fund. Economy minister Felisa Miceli, said the decision ``has high symbolic meaning because the country is reclaiming its autonomy.''

Argentinian President Nestor Kirchner had earlier blamed the IMF for helping lead the country to its US$95bn debt default in 2001 by supporting a "failed'' currency system that pegged the peso to the dollar at a one-to-one exchange rate.

As South America's second-biggest economy, Argentina, has now recovered from the default, and the ensuing currency devaluation, even as a surge in exports has fueled growth. The central bank said its foreign reserves had risen to US$28bn on Wednesday from US$8.2bn in January 2003, but post clearance of the IMF loan, will now dip to about US$18bn.
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China takes another step towards yuan float
Beijing: As part of the graduated moves towards greater currency flexibility, China is set to introduce today a long-awaited system of foreign exchange market-making alongside "over-the-counter" trading in the yuan.

The move is the latest in a series aimed at liberalizing China's exchange rate regime. The move reflects the landmark revaluation of the yuan by 2.1 per cent against the dollar last July, when it also replaced its 11-year old peg to the US currency.

Last week Beijing had made preparations for today's move when it approved a total of 13 foreign and domestic banks, including Britain's HSBC and Standard Chartered, and ABN Amro, the Dutch group, to act as market-makers for trading in the yuan.

The introduction of a market-making system will introduce deeper and more liquid currency markets, a necessary pre-condition for the yuan to float freely on global foreign exchanges.

Today's changes would still allow the yuan's value to fluctuate up and down by a mere 0.3 per cent against a daily "parity" versus the dollar, while it will continue to be restricted to daily moves of no more than 3 per cent against other currencies.
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ThyssenKrupp matches Arcelor's bid for Dofasco
New York: ThyssenKrupp AG, Germany's largest steelmaker, has upped its bid to C$4.9bn (US$4.2bn) for Hamilton, Ontario-based Dofasco Inc., matching a hostile bid for Canada's biggest steel producer from Arcelor SA.

With ThyssenKrupp sweetening its offer to C$63 a share, from its earlier C$61.50, the Dofasco board has now expressed its support for the revised bid. Dofasco last year had said that it favors ThyssenKrupp's bid over Arcelor's because the transaction won't result in any restructuring involving employees and operations.

Through Dofasco, both ThyssenKrupp and Arcelor are aiming for participation in the North American automotive- steel market and also greater access to iron ore, for Dofasco produces more iron ore than it consumes. Dofasco, which makes about 10 per cent of the steel for the North American auto market and has companies such as Ford Motor Co. among its clients.

The new bid will extend the date of acceptance to Jan. 25 from Jan. 10, ThyssenKrupp said. The purchase would be ThyssenKrupp's biggest since it was formed from the merger of Thyssen AG and Fried. Krupp AG Hoesch- Krupp in 1999.

Dofasco, founded in 1912, would be the second major North American steelmaker to be acquired by a European company after Rotterdam-based Mittal bought International Steel Group for US$4.5bn in April last year.
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