Yuan Revaluation – Some Coordination, Please

2010-01-06

Kind of difficult to respond to this sort of problem:

China may see "huge" inflows of speculative capital as foreign investors step up bets on yuan gains, making it difficult to manage liquidity, said Zhang Xiaoqiang, vice-minister of the National Development and Reform Commission (NDRC). (China Daily)

when the news is full of stories like this:

Now is a good time to reform the yuan exchange-rate mechanism and allow a one-off 10% appreciation in the Chinese currency against the U.S. dollar, a prominent Chinese think tank said Wednesday. (Wall Street Journal)

I'm just saying . . .

You know, much of the world is already under the mistaken impression that China is a totalitarian state. Mindful of that, Beijing might as well act like it, at least once in a while when doing so is beneficial.

Tags: China Business & Economy