Fine-tuning the exchange rate for Chinese Yuan (Renminbi)
The People’s Bank of China Governor Zhou Xiaochuan said today that the Chinese Yuan might be “fine-tuned” to manage the after effect ripples from the global financial crisis which started in Oct 2008.
His comments raised eye-brows because it is not common for Chinese officials to comment on the valuation of the Renminbi as well as the fact that it had been some 18 months since the financial crisis stuck. Are such comments belated?
Regardless of the timeliness of his comments, forex traders would be interested to know the impact of forex market. Currently, 1 U.S. dollar = 6.826 Chinese yuan and it is very unclear whether the fine-tuning means the appreciation or depreciation of the Chinese Yuan (RMB). Most analyst expect the yuan to gradually appreciate over time, which several hedge funds expect to see more signs (more…)
