China signals bigger yuan rise unlikely

The Chinese are now saying that they don’t see more revisions to their yuan policy. I have to say that I’m very skeptical. The fact is that China now has a lot more flexibility in managing the yuan. They bought themselves some time, but the monetary realities are still the same. Our Treasury debt just doesn’t pay very much. If I had to guess, I’d say that this is an empty gesture to prevent yuan speculation. Good luck.

Posted by on July 23rd, 2005 at 9:31 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.