« Treasury to order bailed-out firms to slash pay | Main | Arbitrage Spreads On Pending Mergers & Acquisitions »
America Urges China to Ease Renminbi
By Martin | October 22, 2009
American appeals for China to allow its currency to appreciate might represent a stalling point for global co-operation.
In its semi-annual report on exchange rate policy the American Treasury Department warned that “the recent lack of flexibility of the renminbi exchange rate and China’s renewed accumulation of foreign exchange reserves risk unwinding some of the progress made in reducing imbalances”.
–
“The Chinese position is that they have invested heavily in their export sector and they have an excess capacity in their export industry,” says Hans Redeker, head of currencies at BNP Paribas. “They will want a good return on this investment and so will be reluctant to move too quickly [to allow the renminbi to appreciate].”
Topics: Uncategorized | No Comments »
Comments
You must be logged in to post a comment.