Thursday, January 03, 2008
RMB has apreciated an annualised 20% in the last month. It looks as if there may be a change in policy from the Chinese authorities. The big question is whether this pace of appreciation will be maintained or whether there will be a conclusive revaluation to a higher level. The problem with the current strategy is that it will only increase speculative flow into the RMB and may make the job of the Chinese monetary authorities even more difficult. The picture and the information comes from Macro Man.