China offers few hints on yuan policy

I sure hope this happens soon, I mean that economy is huge 6 Trillion? 2nd largest of all and it is being artifically supported by the US Dollar. It is time to float it China!



China offers few hints on yuan policy Likely to widen dollar trading band at its own pace
By Lisa Twaronite, CBS.MarketWatch.com
Nov. 22, 2004



TOKYO (CBS.MW) - Chinese officials gave investors no fresh hints this weekend that their nation's currency will be untethered from the dollar anytime soon, but said nothing to dash hopes of a more flexible yuan in the medium term.


Snip

On Monday, the offshore market for nondeliverable yuan forwards posted its widest one-year discount since early March, hitting 4,000 points compared with Friday's 3,850, according to Dow Jones Newswires. That means the market is now pricing in expectations that the yuan will rise 5.3 percent against the dollar in the next year, compared to a 1.0 percent rise implied in July.






China offers few hints on yuan policy

There is tons of US investment going into China.

I know here in Michigan which is heavy automotive.

An example is American Axle Corporation which supplies the Big Three (Ford, DaimlerChrysler, GM). They currently have 2.5 billion in Investments in China and project 5.0 billion (US Dollars) by 2006.

Later,

Reason

Originally posted by edsinger
I sure hope this happens soon, I mean that economy is huge 6 Trillion? 2nd largest of all and it is being artifically supported by the US Dollar. It is time to float it China!

The US dollar is "artifically" supported by the world. Isn't it the Reserve currency don't people buy into its debt

The PRC might float the yuan, but I and doubt it will without something to gain, perhaps it might attempt to become reserve currency. Highly possible as the US economy is in debt, and in deficit.

Well I would say that the yaun would rise significantly very fast if floated and the effects would be felt world wide. A slow approach is needed but the tie to the dollar in itself is hurting the United States. The Chinese economy has beifited as has the American consumer, but times change.

Originally posted by edsinger
Well I would say that the yaun would rise significantly very fast if floated and the effects would be felt world wide. A slow approach is needed but the tie to the dollar in itself is hurting the United States. The Chinese economy has beifited as has the American consumer, but times change.

The Chinese and Japanese manipulation of the US dollar has helped the US.
Their purchases have helped keep interest rates and inflation low.