Why the new flexibility of the Yuan will not Mean its Appreciation, nor Gold’s Fall in the Yuan

- June 23rd, 2010

Kitco.com reported on Why the new flexibility of the Yuan will not Mean its Appreciation, nor Gold’s Fall in the Yuan:

Kitco.com reported on Why the new flexibility of the Yuan will not Mean its Appreciation, nor Gold’s Fall in the Yuan:

With China dropping the ‘peg’ to the U.S. $, the financial world is expecting it to appreciate up to 30% over time. But we don’t expect this at all. China has interests and will do no-one favors unless they are in China’s interests. There are some who say it is in China’s interests as they may well need to cap rising inflation or cheapen imports. More expensive Chinese exports can still effectively penetrate world markets? But China is a very different economy to any in the West and economic rules that apply to the West have to be modified in the East. So, what will happen to the Yuan now?

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