Brad Setser's Web Log: So private Chinese citizens now prefer renminbi to dollars ...
This is a comment about the apparent preference in China for local currency rather than the USD. Given the speculation about a renminbi revaluation, this should not be a total surprise. There are some anecdotal reports in addition to the data from the Peoples' Bank of China.
I believe that most of the research on the Asian crisis suggests that domestic players were the most swift and most sucessful in moving money out of the country (or at lease into other currencies). There is no reason to believe that it would not work the other way round. All the talk is when not if the Chinese authorities will revalue the renminbi.
This is a comment about the apparent preference in China for local currency rather than the USD. Given the speculation about a renminbi revaluation, this should not be a total surprise. There are some anecdotal reports in addition to the data from the Peoples' Bank of China.
I believe that most of the research on the Asian crisis suggests that domestic players were the most swift and most sucessful in moving money out of the country (or at lease into other currencies). There is no reason to believe that it would not work the other way round. All the talk is when not if the Chinese authorities will revalue the renminbi.
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