China hints at readiness to let yuan rise

[GoFlyKiteNow]

China hints at readiness to let yuan rise
7 Apr 2010, 1728 hrs IST,REUTERS

BEIJING: U.S. Treasury Secretary Timothy Geithner will hold talks in Beijing on Thursday against a background of fresh signals from Chinese
Yuan policymakers that they might be paving the way to let the yuan resume its rise. ( Watch )

The National Development and Reform Commission (NDRC), the nation's top economic planner, said China would monitor exchange rate risks facing exporters, while an economist from the agency said Beijing should edge towards a more flexible yuan.

"We should keep the yuan basically stable at a balanced and reasonable level, while strengthening analysis and monitoring and making announcements about risks in a timely manner to reduce exporters' risks and losses," the NDRC said in a policy overview issued on the central government's website, www.gov.cn.

The statement suggested policymakers are weighing what may happen if they let the yuan recommence its climb after keeping it yoked to the dollar since mid-2008. On Wednesday China's central bank set the yuan's mid-point at 6.8259 per dollar, the strongest for the yuan in 10 months.

Dealers have been rushing to buy Asian currencies that may strengthen as well if China lets the yuan appreciate against the dollar. For example, the dollar fell to a near 23-month low of 3.1930 Malaysian ringgit on Wednesday.

 

[Watchman]

When the yuan rises it's like the receding sea water that precedes a Tsunami !

 

[GoFlyKiteNow]

When the yuan rises it's like the receding sea water that precedes a Tsunami !

Why should there be a Tsunami ?.
The Yuan is not a reserve currency like Yen or dollar.

 

[Watchman]

Why should there be a Tsunami ?.
The Yuan is not a reserve currency like Yen or dollar.

You get a reverse of the current .

 

[longbow]

All this talk about rise of Yuan sounds political to me. What advantage is it to the US if Yuan increases? Chinese products do not compete with US products. In fact US products compete more with EU, Japan and S Korea.

Recent chaos in Kyrgyzstan is again another country that is impt to the US in its war in Afghanistan and yet Kyrgystan has a common border with china (political influence.

Apparently on the same that that US got China to agree to more sanctions to Iran (Chinese support is needed to prevent a UN veto), the Chinese in return forced US to affirm its Taiwan and Tibet policy.

Looks like lots of poker playing among the 2 superpowers. As the Afghan war revs up, US needs to rely more on more on Chinese support and the Chinese know this and will play along.

US announces new China position on China 30/2/2010

http://news.yahoo.com/s/ap/20100330/ap_on_re_ca/cn_g8_iran

and on the same day US reaffirms policy.

2010/03/30

In the small hours on March 30, Beijing time, US Deputy Secretary of State James Steinberg held a media briefing at the Foreign Press Center in Washington D.C.

Steinberg stated the Obama Administration's China policy. He reiterated that the United States seeks a relationship with China marked by a positive and pragmatic cooperation in which the two countries expand their areas of mutual interest while candidly addressing their differences. He said that since the inauguration of the Obama Administration, the two presidents have maintained close communication through meetings and phone calls. President Obama visited China last fall. The two sides created the China-US Strategic and Economic Dialogues. China-US relations, which had a good start, have been extremely constructive.

Steinberg stated that the United States adheres to the one China policy and maintains only unofficial relations with Taiwan. This is a long-standing and firm policy pursued by Democratic and Republican administrations alike since President Nixon, President Carter and President Reagan. The centerpiece is the one China policy, which has not changed. The US side does not support independence for Taiwan and opposes unilateral attempts to change the status quo. The US side welcomes the continued improvement and development of cross-Straits relations. The US side hopes that the two sides of the Straits will resolve the issue peacefully through dialogue. The US side reiterated that it considers Tibet to be a part of China and does not support independence for Tibet. The US side supports continued dialogue between the central government of China and the representatives of the Dalai Lama.

On economic and trade issues, Steinberg stressed the need for all countries to do their part to avoid zero-sum solutions that in the end benefit no country and to assure sustainable global economic growth. The US side looks forward to the second round of the S&EDs in Beijing.

Steinberg also touched upon China-US cooperation on security and regional hotspot issues.

 

[Received_by_Kings]

Why should there be a Tsunami ?.
The Yuan is not a reserve currency like Yen or dollar.

You get a reverse of the current .

Nice word play Watch.