ADMIN
06-18-2010, 10:36 AM
THURSDAY,
JUNE 10, 2010
Revalue Renminbi or Dogs Unleashed,
June 10, 2010
Revalue Renminbi or Dogs Unleashed, Patterson Says
China has until the end of the month to strengthen its currency before
Congressional leaders impose measures to counter what they say is an
unfair trade advantage, according to JPMorgan Chase & Co.’s Rebecca
Patterson.
Senator Charles Schumer of New York has introduced a bill that would
require the Treasury Department to determine if a nation has a currency
misaligned with the U.S. dollar. The proposal would let companies seek
import duties to compensate for an undervalued currency and impose
tariffs. China must begin strengthening the yuan, also known as the
renminbi, before the Group of 20 meeting in Toronto on June 25,
Patterson said,
“Treasury’s said, ‘We’re going to stay quiet; we’re not going to put any
pressure on you,” Patterson, head of foreign exchange at the private
banking unit of JPMorgan, said during a Bloomberg Radio interview today
on Surveillance with Tom Keene. “‘You have a window to move on the
renminbi, strengthen it, and make everything more competitive. If it
doesn’t happen by the end of June, we can’t hold the dogs back much
longer’ -- no offense to the congressmen.”
Since July 2008, the Chinese currency has been held by officials around
6.83 per dollar, after Premier Wen Jiabao’s government allowed a 21
percent advance in the prior three years. The policy helped exporters
weather last year’s contraction in global trade while spurring criticism that
China is giving its companies an unfair subsidy.
Treasury Secretary Timothy F. Geithner said before Congress today that
China’s exchange-rate policy is an impediment to a more balanced global
recovery and allowing the yuan to strengthen would benefit Chinese
consumers. The Senate will vote within two weeks on the measure aimed at getting
China to raise the value of the yuan, Schumer said yesterday.
Fastest Growing
China’s exports jumped 48.5 percent in May from a year earlier, the
biggest gain in more than six years, indicating Europe’s sovereign-debt
crisis has yet to pose a restraint on the world’s fastest-growing major
economy.
“Chinese officials are smarter than some folks in the market give them
credit for,” Patterson said. “Of the policy makers around the world,
they’re in a unique situation: China is starting from a position of
strength.”
China’s small budget deficit, huge foreign reserves, and huge current
account surplus mean that even if global growth slows, it has room to
respond, according to Patterson.
“Even if the U.S. and Europe fall off a cliff, China can act,” she said. “It can
do something to keep growth up and if growth is getting too
tight, boom, they put on administrative measures and they prick the
bubbles before they overheat. China is actually able and is trying very
hard to engineer its own version of Goldilocks.”
http://articlesofint...-unleashed.html (http://articlesofint...-unleashed.html/)
http://articlesofinterest-kelley.blo...unleashed.html (http://articlesofinterest-kelley.blo...unleashed.html/)
JUNE 10, 2010
Revalue Renminbi or Dogs Unleashed,
June 10, 2010
Revalue Renminbi or Dogs Unleashed, Patterson Says
China has until the end of the month to strengthen its currency before
Congressional leaders impose measures to counter what they say is an
unfair trade advantage, according to JPMorgan Chase & Co.’s Rebecca
Patterson.
Senator Charles Schumer of New York has introduced a bill that would
require the Treasury Department to determine if a nation has a currency
misaligned with the U.S. dollar. The proposal would let companies seek
import duties to compensate for an undervalued currency and impose
tariffs. China must begin strengthening the yuan, also known as the
renminbi, before the Group of 20 meeting in Toronto on June 25,
Patterson said,
“Treasury’s said, ‘We’re going to stay quiet; we’re not going to put any
pressure on you,” Patterson, head of foreign exchange at the private
banking unit of JPMorgan, said during a Bloomberg Radio interview today
on Surveillance with Tom Keene. “‘You have a window to move on the
renminbi, strengthen it, and make everything more competitive. If it
doesn’t happen by the end of June, we can’t hold the dogs back much
longer’ -- no offense to the congressmen.”
Since July 2008, the Chinese currency has been held by officials around
6.83 per dollar, after Premier Wen Jiabao’s government allowed a 21
percent advance in the prior three years. The policy helped exporters
weather last year’s contraction in global trade while spurring criticism that
China is giving its companies an unfair subsidy.
Treasury Secretary Timothy F. Geithner said before Congress today that
China’s exchange-rate policy is an impediment to a more balanced global
recovery and allowing the yuan to strengthen would benefit Chinese
consumers. The Senate will vote within two weeks on the measure aimed at getting
China to raise the value of the yuan, Schumer said yesterday.
Fastest Growing
China’s exports jumped 48.5 percent in May from a year earlier, the
biggest gain in more than six years, indicating Europe’s sovereign-debt
crisis has yet to pose a restraint on the world’s fastest-growing major
economy.
“Chinese officials are smarter than some folks in the market give them
credit for,” Patterson said. “Of the policy makers around the world,
they’re in a unique situation: China is starting from a position of
strength.”
China’s small budget deficit, huge foreign reserves, and huge current
account surplus mean that even if global growth slows, it has room to
respond, according to Patterson.
“Even if the U.S. and Europe fall off a cliff, China can act,” she said. “It can
do something to keep growth up and if growth is getting too
tight, boom, they put on administrative measures and they prick the
bubbles before they overheat. China is actually able and is trying very
hard to engineer its own version of Goldilocks.”
http://articlesofint...-unleashed.html (http://articlesofint...-unleashed.html/)
http://articlesofinterest-kelley.blo...unleashed.html (http://articlesofinterest-kelley.blo...unleashed.html/)