China unpegs RMB to USD

Discussion in 'Asia' started by freeandfun1, Jul 21, 2005.

  1. freeandfun1
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    freeandfun1 VIP Member

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    http://news.yahoo.com/s/ap/20050721/ap_on_bi_ge/china_currency

    The portion in bold is very key to their thinking. Right now China is on a buying spree. So of course they should and do want to do anything they can to make their "overseas" purchases as cheap as possible. This is playing right into their plans.

     
  2. Markainion
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    Markainion Member

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    A good move even though a baby step in the right direction. Most economist think the currency is 20% undervalude. Price will increase slightly but not allot unless a pattern developes that China slowly countinues to revalute its currency.
     
  3. ScreamingEagle
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    ScreamingEagle Gold Member

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    Control is what they are all about for sure.

    Do you think they can prevent deflation?
     

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