Sunday, March 14, 2010

RenMinBi Redux

Premier Wen Jiabao promised to reform currency controls, but gave no indication when that might happen. Washington and other trading partners are pressing Beijing to ease controls that they say keep the yuan -- also called the renminbi -- undervalued, giving its exporters an unfair price advantage and swelling its trade surplus.

"First of all, I don't think the renminbi is undervalued," Wen said at a news conference. "We oppose all countries engaging in mutual finger-pointing or taking strong measures to force other nations to appreciate their currencies."

So, if its not undervalued, why not let its value float freely?


LOL. Dude, you just be-clowned yourself. Your own officials said the Yuan-Dollar rate would remain unchanged until Chinese exports recovered to their previous levels...i.e. you are trying to boost your exports by keeping your currency weak.

I suspect we will see the revival of plans to put tariffs on Chinese goods during 2010 mid-term elections.

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