China: Yuan revaluation may remain on back burner: experts (Yuan should stay low due to Greece)

Xinhua ^ | 05/19/10

[TigerLikesRooster]

Yuan revaluation may remain on back burner: experts

English.news.cn 2010-05-19 10:37:24 FeedbackPrintRSS

BEIJING, May 19 -- The chances of an early revaluation of the renminbi look unlikely and could happen much later than expected, considering that the nation's trade surplus may see steep erosions due to the European debt crisis and the growing trade protectionist measures against China's exports, leading economists and experts said on Tuesday.

Earlier estimates were that the nation would allow the renminbi to rise during the second quarter, with overall gains of 3 to 5 percent for the whole year.

Economists now consider such a move unlikely and expect any currency moves to be deferred till the end of the year with a smaller range and overall gains of 2 to 3 percent.

Ministry of Commerce officials had on Monday indicated that the prospects for the nation's exports were not that hopeful this year and the annual trade surplus may see a big drop.

"The improved trade balance will lay a good foundation for China to implement its macro-economic policy and the currency issue should not be too politicized," said ministry spokesman Yao Jian.

"The growth in imports will, however, far exceed that of exports due to the surging prices for imported goods, and hence the large decline in the trade surplus will not be such a big concern," said Dong Xian'an, a chief economist at Industrial Securities Shanghai.

Dong expects the trade surplus this year to drop by 30 percent to $137.5 billion, compared with $196.1 billion in 2009.

[TigerLikesRooster]

P!

[jiggyboy]

Man the U.S. just won’t quit with their obsession with China getting into the currency game. This began with GWB just after the housing bubble broke I do believe. I guess they’re trying to shame China’s government into being as reckless as they are.

[TigerLikesRooster]

Do you know what Martin Wolf's(Financial Times columnist) is saying these days?

China saved too much, and all that savings tempted Western financial firms to be engaged in mindless overleveraged speculation. China is at fault for tempting Wall St. crooks. If you make such an argument, the burden of guilt will be equally shared by China. This looks like a deliberate blame-sharing and obfuscation. Sure there is large amount of money looking for places to invest. However, why does it justify criminal fraud in Wall. St? They could invest it honestly and still get bubble. It would pop eventually and create economic hardship, but nowhere even close to the current level. If such bubble popped, Martin Wolf would be more justified to address structural imbalance.

This whole desperate exercise of drawing China in and dilute their guilt sounds so pathetic. No that I like China. I think they should collapse as well, due to myriads of problems. Still Wall St. crooks are so cowardly and brazen. Banality of evil unfolding before our eyes.