Yuan

[Stephen]

Hope everyone moved some money to China I sure did!

 

 

YUAN: The rumour mill is working over-time, Japanese traders are talking of an imminent announcement from Geithner and PBoC officials.

 

Read more: DailyFX Forex Stream http://www.dailyfx.com/real_time_news/#ixzz0kVNtYVYH

[GDBILL]

Hope everyone moved some money to China I sure did!

 

 

YUAN: The rumour mill is working over-time, Japanese traders are talking of an imminent announcement from Geithner and PBoC officials.

 

Read more: DailyFX Forex Stream http://www.dailyfx.com/real_time_news/#ixzz0kVNtYVYH

 

 

I hope you're right!

 

I know the People's Bank of China is trying to soak up a lot of liquidity. I wonder if that has any significance.

 

But then when you read China Daily all they talk about is how a currency revaluation will not be good for the world economy and the US in particular.

Edited April 8, 2010 by GDBILL (see edit history)

[TLB]

Looks like this is happening.

http://finance.yahoo.com/

Click on "Report: China close to announcing currency revision" (sorry, the URL was too long to cut and paste here). Interesting article that outlines some of the back and forth within the Party on this issue.

 

"The Chinese government is very close to announcing a revision of its currency policy in the coming days that will allow greater variation in the value of its currency combined with a small but immediate jump in its value against the dollar, people with knowledge of the consensus emerging in Beijing said on Thursday."

 

"The model for the upcoming shift in currency policy is China¡¯s move in 2005, when the leadership allowed the renminbi to jump 2 percent overnight against the dollar and then trade in a wider daily range, but with a trend toward further strengthening against the dollar. For the upcoming announcement, however, China is likely to emphasize that the value of the renminbi can fall as well as rise on any given day, so as to discourage a flood of speculative investment into China betting on rapid further appreciation, they said."

 

"China¡¯s commerce ministry, which is very close to the country¡¯s exporters, has strenuously and publicly opposed a rise in the value of China¡¯s currency over the past month. But it appears to have lost the struggle in Beijing as other interest groups have argued that China is too dependent on the dollar, that a more flexible currency would make it easier to manage the Chinese economy and that China is becoming increasingly isolated on the world stage because of its steadfast opposition to any appreciation of the renminbi since July, 2008."

[GDBILL]

Looks like this is happening.

http://finance.yahoo.com/

Click on "Report: China close to announcing currency revision" (sorry, the URL was too long to cut and paste here). Interesting article that outlines some of the back and forth within the Party on this issue.

 

"The Chinese government is very close to announcing a revision of its currency policy in the coming days that will allow greater variation in the value of its currency combined with a small but immediate jump in its value against the dollar, people with knowledge of the consensus emerging in Beijing said on Thursday."

 

"The model for the upcoming shift in currency policy is China¡¯s move in 2005, when the leadership allowed the renminbi to jump 2 percent overnight against the dollar and then trade in a wider daily range, but with a trend toward further strengthening against the dollar. For the upcoming announcement, however, China is likely to emphasize that the value of the renminbi can fall as well as rise on any given day, so as to discourage a flood of speculative investment into China betting on rapid further appreciation, they said."

 

"China¡¯s commerce ministry, which is very close to the country¡¯s exporters, has strenuously and publicly opposed a rise in the value of China¡¯s currency over the past month. But it appears to have lost the struggle in Beijing as other interest groups have argued that China is too dependent on the dollar, that a more flexible currency would make it easier to manage the Chinese economy and that China is becoming increasingly isolated on the world stage because of its steadfast opposition to any appreciation of the renminbi since July, 2008."

 

 

Very interesting indeed.

 

Can't find the original article mentioned, but there is one about Geithner's meeting here:

 

http://finance.yahoo.com/news/Geithner-Chi...set=&ccode=

 

Even a 3% rise would be nice. I'm going to hold off I guess on converting a bunch of RMB into US$.

[Tony_onrock]

Don't know if it is true or not. I guess will know about it tonight till Sunday night.

[Stephen]

Don't know if it is true or not. I guess will know about it tonight till Sunday night.

 

 

 

Yeah¡­ don¡¯t know if it will happen within hours but¡­ I think it¡¯s a good probability within weeks. For anyone that has the means¡­ you could possible make (approx ) 1 yuan per dollar. Something to think about

[Guest Tony n Terrific]

They are predicting a 2-3% increase in the Yuan by this weekend. Some analysts say the Yuan is 40% undervalued now.

[Randy W]

I was only able to withdraw 2000RMB today - usually, it's 4000-4500RMB

[knloregon]

Just keep in mind, if its an actual float, RMB could sink------not appreciate against the USD. (see the docs. at the Donald Trump thread)

 

If its a slight (tightly managed) ---ie: against true market forces--- readjustment, it serves to save face for Geithner et. al. And keeps China's ass out of the sling as a: 'currency manipulator" ----looking at the 4/15/ deadline for that. In which case, it simply buys more time, and market leverage for China.

 

but if the RMB truly floats----and sinks against the USD---it ALSO buys more market leverage for China---only in that scenario MUCH more. And if thats the case, the Obama Administration (along with Geithner) can probably kiss their sweet ass goodbye in 2012.

[GDBILL]

They are predicting a 2-3% increase in the Yuan by this weekend. Some analysts say the Yuan is 40% undervalued now.

 

 

Looks like the predictions were worthless.

[chilton747]

They are predicting a 2-3% increase in the Yuan by this weekend. Some analysts say the Yuan is 40% undervalued now.

 

 

Looks like the predictions were worthless.

 

I agree. Now for another prediction...the predictor? My wife.

 

She says that the change will begin in May or June and at a slow rate. We will see...

[GDBILL]

They are predicting a 2-3% increase in the Yuan by this weekend. Some analysts say the Yuan is 40% undervalued now.

 

 

Looks like the predictions were worthless.

 

I agree. Now for another prediction...the predictor? My wife.

 

She says that the change will begin in May or June and at a slow rate. We will see...

 

I would tend to agree with her.

 

One thing is for sure, whatever is done will be done with Chinese characteristics.

[tsap seui]

President Barack Obama and Chinese counterpart Hu Jintao discuss the yuan's level vs. the dollar, with Hu saying China will stick to its own path.

 

Kinda like 'pound sand'.

 

I for one, hope the Chinese stick to their own path and don't allow us to bend their arm...it wasn't them who got America into the dumpster, we should work it out on our own, without pointing fingers at others for our plight. Afterall, it was American businessmen who took the jobs offshore. I'm sick and tired of our ...Mommy, he stepped on my toes

 

Where is the American spirit? Are we reduced to finger pointing? Just take the real crooks out of their ivory towers and vacation style federal pens, and shoot the bastards as examples of what NOT to do.

 

Stick to your guns Hu...we should own up to our own mistakes and take credit for them for once.

 

tsap seui

[GDBILL]

President Barack Obama and Chinese counterpart Hu Jintao discuss the yuan's level vs. the dollar, with Hu saying China will stick to its own path.

 

Kinda like 'pound sand'.

 

I for one, hope the Chinese stick to their own path and don't allow us to bend their arm...it wasn't them who got America into the dumpster, we should work it out on our own, without pointing fingers at others for our plight. Afterall, it was American businessmen who took the jobs offshore. I'm sick and tired of our ...Mommy, he stepped on my toes

 

Where is the American spirit? Are we reduced to finger pointing? Just take the real crooks out of their ivory towers and vacation style federal pens, and shoot the bastards as examples of what NOT to do.

 

Stick to your guns Hu...we should own up to our own mistakes and take credit for them for once.

 

tsap seui

 

The Chinese government should do what is best for their nation.

 

That said, however, they do have to make the RMB into a freely convertible currency. That would solve all the currency exchange issues.

 

I think under the terms of their WTO agreement they are required to have the RMB freely convertible by a certain time.

[knloregon]

"....we should own up to our own mistakes and take credit for them for once...."

 

 

Gee Tsap, I though we were.... we've "taken credit" from the Chinese to the tune of over two trillion dollars...

 

Own up to THAT mistake ? Not likely, by either Dems or Reps.....