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Chinese Devaluing Their Currency?
The current rumor is that the Chinese are so furious about US banks selling them bad securities while watching the US government bail themout, they will be devaluing their currency by the end of the year.Right now all this means is that the Federal Reserve's plan to reflate the economy just took a coupla torpedoes amidships Now for TFA: SHANGHAI (AFP) A sudden drop in the value of the Chinese currency may signal a policy shift to prop up exports during the financial crisis, experts said Tuesday. The yuan fell by its maximum daily trading limit for a second consecutive day Tuesday. The fall in its value comes just before the United States and China hold high level economic talks in Beijing at the end of the week. The yuan's value has been a sensitive issue in the past between China and the United States, which has accused Beijing of deliberately keeping its currency low to protect the competitiveness of Chinese export prices. "It is the best timing for the yuan to start depreciating," Lu Zhengwei, a Shanghai-based economist with Industrial Bank, told AFP. "The slowdown in China's economy is clearly intensifying, the export sector is suffering the coldest winter in the past five years." Posted by: Ebbineger Ebbolusing8960 2008-12-05 |
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