ADMIN
06-18-2010, 12:37 PM
IMF keen to extol virtues of yuan revaluation...
Thursday, June 17, 2010
The International Monetary Fund again urged China to revalue its currency as soon as possible for its own good after the foreign ministry in Beijing hit back at the United States, arguing that the yuan exchange rate issue should not be politicized.
It is in China's interests to revalue the yuan, IMF chief economist Olivier Blanchard said in the Finnish business paper Kauppalehti.
It is also important for the rest of the world that the revaluation should happen as soon as possible, he added.
China's May data released last week highlighted that inflation hit a 19-month high and home prices rose 12.4 percent from a year earlier. "Some sectors in China are overheating and staff are demanding more pay. They [authorities] don't want the inflation risk to grow," Blanchard said.
http://203.80.0.221/openx-2.6.4/www/delivery/lg.php?bannerid=324&campaignid=263&zoneid=4&loc=http%3A%2F%2Fwww.thestandard.com.hk%2Fnews_det ail.asp%3Fpp_cat%3D1%26art_id%3D99463%26sid%3D2860 7730%26con_type%3D1&referer=http%3A%2F%2Fwww.google.com.pr%2Fsearch%3F q%3Dyuan+revaluation+in+pekin%26ie%3Dutf-8%26oe%3Dutf-8%26aq%3Dt%26rls%3Dorg.mozilla%3Aen-US%3Aofficial%26client%3Dfirefox-a&cb=72eb062542
http://203.80.0.221/openx-2.6.4/www/delivery/avw.php?zoneid=4&n=a2005f29&ct0=%c (http://203.80.0.221/openx-2.6.4/www/delivery/ck.php?n=a2005f29&cb=%n) While the yuan is under increasing pressure to appreciate, some still hold the view that it has been depreciating internally in the country. In an article in the People's Daily, He Weida, a professor with the University of Science and Technology in Beijing, suggests that Beijing should build up a floating exchange rate system to avoid losses.
Meanwhile, the June quarterly bulletin from the Hong Kong Monetary Authority said the impact of a yuan appreciation on Hong Kong inflation should be modest.
But its effect on rising inflow and on asset prices could be more significant. ELLEN WANG/ THE STANDARD
Link: http://www.thestandard.com.hk/news_d...730&con_type=1 (http://www.thestandard.com.hk/news_d...730&con_type=1)
This needed its own thread. Thanks Zai
Thursday, June 17, 2010
The International Monetary Fund again urged China to revalue its currency as soon as possible for its own good after the foreign ministry in Beijing hit back at the United States, arguing that the yuan exchange rate issue should not be politicized.
It is in China's interests to revalue the yuan, IMF chief economist Olivier Blanchard said in the Finnish business paper Kauppalehti.
It is also important for the rest of the world that the revaluation should happen as soon as possible, he added.
China's May data released last week highlighted that inflation hit a 19-month high and home prices rose 12.4 percent from a year earlier. "Some sectors in China are overheating and staff are demanding more pay. They [authorities] don't want the inflation risk to grow," Blanchard said.
http://203.80.0.221/openx-2.6.4/www/delivery/lg.php?bannerid=324&campaignid=263&zoneid=4&loc=http%3A%2F%2Fwww.thestandard.com.hk%2Fnews_det ail.asp%3Fpp_cat%3D1%26art_id%3D99463%26sid%3D2860 7730%26con_type%3D1&referer=http%3A%2F%2Fwww.google.com.pr%2Fsearch%3F q%3Dyuan+revaluation+in+pekin%26ie%3Dutf-8%26oe%3Dutf-8%26aq%3Dt%26rls%3Dorg.mozilla%3Aen-US%3Aofficial%26client%3Dfirefox-a&cb=72eb062542
http://203.80.0.221/openx-2.6.4/www/delivery/avw.php?zoneid=4&n=a2005f29&ct0=%c (http://203.80.0.221/openx-2.6.4/www/delivery/ck.php?n=a2005f29&cb=%n) While the yuan is under increasing pressure to appreciate, some still hold the view that it has been depreciating internally in the country. In an article in the People's Daily, He Weida, a professor with the University of Science and Technology in Beijing, suggests that Beijing should build up a floating exchange rate system to avoid losses.
Meanwhile, the June quarterly bulletin from the Hong Kong Monetary Authority said the impact of a yuan appreciation on Hong Kong inflation should be modest.
But its effect on rising inflow and on asset prices could be more significant. ELLEN WANG/ THE STANDARD
Link: http://www.thestandard.com.hk/news_d...730&con_type=1 (http://www.thestandard.com.hk/news_d...730&con_type=1)
This needed its own thread. Thanks Zai