Goldman’s O’Neill Says China May Revalue Yuan Soon as Next Week

Here goes Goldman AGAIN!! hope they are RIGHT this time!

Goldman’s O’Neill Says China May Revalue Yuan Soon as Next Week
April 14, 2010, 11:22 AM EDT

By Joshua Goodman


April 14 (Bloomberg) -- Goldman Sachs Group Inc.’s chief global economist Jim O’Neill said China may revalue the yuan by between 2 percent and 5 percent as early as next week.


O’Neill, in an interview, said trading in local currency among Brazil, Russia, India and China--to be discussed at a heads-of-state summit of BRIC nations this week in Brasilia-- won’t work because of China’s use of a dollar peg to manage the value of the yuan.


“It’s all semantics to talk about trade in local currency unless they do what the rest of world wants them to, which is provide more freedom to use those currencies,” O’Neill said in a phone interview from London. “The consequences of Chinese policies are increasingly seen by everyone, including the BRICs.”


To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

This will be FUN to watch what China will do now that their BRIC group is getting ticked. Really why have the BRIC meeting next week if nothing will get solved BECAUSE OF CHINA!!!!

i think the RV of the yuan will be a tipping point for the rest of the world, starting in asia. As things begin to float there, the pressure will only increase in Iraq. It has likely already been said, but I thought it bore repeating.

too cool ck..thanks for your input...we appreciate it

your 2 cents worth means more to me than an million dollars of anyone else's bs on the other sites. Thank you for all your research and hard work....really apppreciate it all.

tickybud

Apparently, Singapore thinks the same thing I do. I didn't see them coming, mostly because I am not as educated about this part of the world. However, since they have laid down their cards it is time for the rest to follow suit. A country would not make a move like this unless they were sure it was right. Based on what I have read here, I agree with MrsCK. The IMF is pulling the strings it seems like. So, this is all very EXCITING. Now we wait, or continue to wait, as the case may be.

Hummmm...thanks Singapore!

Ditto!!!!