The finance ministers’ meetings in Istanbul over the weekend revealed a deep crack in the veneer of harmony over the global financial crisis that the world’s leading economies have been seeking to present to the world. Ministers from the seven largest rich nations urged China to take steps to strengthen the yuan, a move Beijing [...]
Posts Tagged as ‘Yuan’
December 9, 2008
China, Having Slowed Yuan’s Appreciation, Takes Foot Off Brake
The yuan’s recent little run of depreciation against the dollar seems to be done. Last week, the central bank allowed the biggest decline in China’s currency since ending its fixed exchange rate against the dollar in 2005. That confirmed a view forming since October among investors that Beijing was weakening the currency to help the [...]
December 4, 2008
China To U.S.: Look After Our U.S. Investments. Unsaid: Or Else?
A curious turn of phrase from Vice-Premier Wang Qishan during his opening speech at the latest bilateral strategic economic talks with his American counterpart U.S. Treasury Secretary Hank Paulson:
”I hope the United States will take all necessary measures to stabilize its economy and financial markets as soon as possible and to ensure the security of [...]
November 22, 2008
China’s Currency Ceases To Appreciate
The yuan’s appreciation seems to have gone into reverse. Its managed rise against the dollar since it was unpegged in July 2005 ceased in September as the global slowdown started to affect China. As those effects intensified, and exporters were hit hard, the yuan has weakened again. There may be technical reasons as investors shun [...]
October 15, 2008
Hot Money Stops Flowing Into China
One unintended benefit for the economy from the global financial crisis is that the flow of hot money into China has slowed to a crawl or less.
The latest quarterly figures from the central bank show foreign exchange reserves rising to $1.9 trillion at the end of September, up from $1.8 trillion at the end of [...]
