Wall Street Journal (June 2)
The yuan is quietly becoming a global currency. 7% or $55 billion of China’s first quarter trade was conducted in yuan. Yuan deposits in the Hong Kong banking system rose to 511 billion ($79 billion) on April 30. As restrictions loosen, a global yuan looks more likely and this will spell change. “A yuan that’s more widely used in international trade and investment could eventually challenge the dollar’s supremacy, correct some of the imbalances that plague the Chinese and global economy, and force a profligate U.S. to live within its means.”
Tags: China, Global currency, Hong Kong, Settlement, U.S., Yuan
The Wall Street Journal (June 20)
China will move toward a more flexible exchange rate, dropping the yuan’s dollar peg. This announcement comes at a good time, ahead of the G-20 meeting. This means the exchange rate won’t overcloud the major issue: “the failures of U.S. and European economic policies.” The WSJ points out the revalued yuan will not be the silver bullet that solves these problems.
China will move toward a more flexible exchange rate, dropping the yuan’s dollar peg. This announcement comes at a good time. Ahead of the G-20 meeting, this means the exchange rate won’t overcloud the major issue: “the failures of U.S. and European economic policies.” The WSJ points out the revalued yuan will not be the silver bullet that solves these problems.
