28 July, 2005

reactions to the yuan shift

The yuan revaluation has sent shock waves through world financial markets and will have wider effects as time progresses. However, some effects are already being seen, and speculation is widespread. 

Survived SARS is the best chronicle I have found of yuan news. The author also has a lot of insight, including criticism of the move in general:

China has moved from a single-currency peg which was largely credible, even though we knew there was extensive political argument surrounding the exchange rate regime.  Now China has a multiple-currency peg, which is less credible, and proposes that several incremental currency moves will be less politicized in an environment with high speculation, precisely in an economy where the "adverse effects on some sectors of the community are large and very visible."

Monday’s WSJ had a lot of information,and Sun Bin has archived the main points, including caution to American diplomats from pushing for too much too fast. 

Michael Turton is blogging that Taiwanese investors may be looking elsewhere as China prepares even further exchange rate hikes, even up to 10 or 15%.  At the same time, a diverting investment in some sectors may be of interest to China.  Attempts to cool its economy have largely been ineffective, and growth has hovered around 9%.  Reuters reports that Chinese economists are now shifting their focus to safely cooling the roaring economy.

Now that China has America off its back for the time being, it can focus on domestic problems like inequality and spreading some of this new-found wealth.  At the same time, the world remains tuned to the decisions of the People’s Bank and may resume pressure if revaluation does not continue speedily enough.

by @ 1:39 am. Filed under China, Taiwan, East Asia, Economy

Leave a Reply

[powered by WordPress.]

Free Hao Wu
Keep on Blogging!

Support Bloggers' Rights!
Support Bloggers' Rights!




Search Blog

Archives

July 2005
M T W T F S S
« Jun   Aug »
  1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

Categories

China

Japan

Hong Kong

The Koreas

Taiwan

India & South Asia

Global & Regional

Meta Data

Listed on BlogShares Ecosystem Details

Other

Design By: Apothegm Designs

sponsors



AsiaPundit Friends

Adopt


Recommended


Mr. China - by Tim Clissold:

How to lose $400 million in the world's biggest market.


Imelda - Power, Myth, Illusion:
A documentary on the former Philippine first lady that is damning, sympathetic and incredibly funny.


Yat Kha - Re Covers:
Siberian throat-singing punk band searches for its roots


5.6.7.8.'s - Bomb the Twist:
Three Japanese women play 1950's-inspired punk.


Gigantor Box Set Volume 1:
The original giant Japanese robot


Mao: The Unknown Story - by Jung Chang and Jon Halliday:
A controversial and damning biography of the Helmsman.

Recent Posts

recent comments

  • Falen: Michael, Are you trolling from one website to the next? How dare you to call Blues "anti-democratic"! I think...
  • Michael Turton: Both those commentors above are incorrect. Taiwan must have weapons to guarantee its own security,...
  • mahathir_fan: The source of the anger is probably because the Stephen YOung the unofficial "ambassador" to Taipei...
  • mahathir_fan: I want to applaud legislator Li Ao for his outspokenness on the arms procurement issue and for debating...
  • mahathir_fan: "A widening Chinese anti-corruption inquiry has targeted Beijing’s party leaders, in a sign that...

Sponsors

Your Ad Here

singapore

Malaysia

Indonesia

Phillippines

Vietnam

More from China

31 queries. 0.404 seconds