A Chinese economist calls for a revaluation of the yuan
January 7, 2010
This time, the call does not come from Washington or Brussels but from the very heart of the circles of power in China. He is a researcher from the very formal Academy of Social Sciences (CASS) who has said that Beijing would do well to leave earlier than the yuan appreciate by 10% against the dollar.
Zhang Bin, who works in the Institute of World Economics and Politics of CASS, a think-tank that advises the Chinese government, this measure would have little impact on Chinese economy and the sacrosanct exports . The economist believes that the best time to act is now. While international pressure is likely to intensify this year, Beijing would have everything to gain by taking the lead. In the wake of the revaluation, the yuan should be allowed to float 3% annually.
GDP growth of 16%
For Zhang Bin, earlier this assessment will take place, the better to fight against the influx of speculative capital. The deputy director of the powerful National Development and Reform Commission (NDRC), the key body for implementation of reforms in China, comes into effect to guard against an influx of this "hot money", the expectations on an assessment futures yuan feeding a surge of speculation about the Chinese currency (our edition of yesterday). A phenomenon that requires Beijing to intervene heavily in the foreign exchange market by buying dollar, and setting the yuan.
Another report from the CASS warns against overheating Chinese, if fiscal policy stimulus and monetary policy remain unchanged from 2008. According to these researchers, the growth could reach 16%!
It remains to be seen whether the experts will be streamed by CASS Chinese leaders. On December 27, Prime Minister Wen Jiabao has opposed a plea of international applications received on the yuan, saying that China should "absolutely not yield" to call Barack Obama and Europeans. And the central bank has just reaffirmed that China should let the yuan "basically stable" in 2010.
January 7, 2010
This time, the call does not come from Washington or Brussels but from the very heart of the circles of power in China. He is a researcher from the very formal Academy of Social Sciences (CASS) who has said that Beijing would do well to leave earlier than the yuan appreciate by 10% against the dollar.
Zhang Bin, who works in the Institute of World Economics and Politics of CASS, a think-tank that advises the Chinese government, this measure would have little impact on Chinese economy and the sacrosanct exports . The economist believes that the best time to act is now. While international pressure is likely to intensify this year, Beijing would have everything to gain by taking the lead. In the wake of the revaluation, the yuan should be allowed to float 3% annually.
GDP growth of 16%
For Zhang Bin, earlier this assessment will take place, the better to fight against the influx of speculative capital. The deputy director of the powerful National Development and Reform Commission (NDRC), the key body for implementation of reforms in China, comes into effect to guard against an influx of this "hot money", the expectations on an assessment futures yuan feeding a surge of speculation about the Chinese currency (our edition of yesterday). A phenomenon that requires Beijing to intervene heavily in the foreign exchange market by buying dollar, and setting the yuan.
Another report from the CASS warns against overheating Chinese, if fiscal policy stimulus and monetary policy remain unchanged from 2008. According to these researchers, the growth could reach 16%!
It remains to be seen whether the experts will be streamed by CASS Chinese leaders. On December 27, Prime Minister Wen Jiabao has opposed a plea of international applications received on the yuan, saying that China should "absolutely not yield" to call Barack Obama and Europeans. And the central bank has just reaffirmed that China should let the yuan "basically stable" in 2010.