Wall Street Journal (December 9)
2011/ 12/ 11 by jd in Global News
Many still blame an artificially high yuan for ongoing economic woes in the U.S. Markets say otherwise. “The yuan has traded at the softer edge of the narrow band around which Beijing allows its exchange rate to fluctuate, notwithstanding Beijing’s effort to push the reference rate stronger.” Other facts also point to an overvalued, not undervalued, Chinese currency. October marked China’s first net outflow of capital since 2007. Wealthy Chinese, importers and exporters are increasingly retaining dollars or moving money offshore. “Insiders are wary of the currency’s—and the economy’s—near-term future.”
Tags: China, Currency, Dollar, Economic strength, U.S., Yuan
