May 3, 2012

China wants to make the currency more flexible Rinminbi, but do not add value

China wants to make the currency more flexible Rinminbi, but do not add value. Nevertheless, the markets will react positively. The currency dispute is not so far from settled.

Confusion around the renminbi: China has announced after the weekend, more flexible for the national currency have gradually responded positively, especially the European markets. Especially export-heavy figures of the industry, including the automotive industry took off, with gains in the trading week. The euro climbed to a four-times-week high of $ 1.2467. But the fact is that the Chinese currency was revalued yet until now.


While many experts have seen the announcement over the weekend as a sign of appreciation against the dollar, Commerzbank is skeptical. It fit into the picture, that "the Chinese central bank announced further reforms to avoid a possible trade war with the United States."

On closer inspection, proving to be the opinion of the Chinese monetary authorities but did not notice an appreciation against the dollar. Other concrete steps were not announced, a limited foreign exchange expert Lutz Karpowitz of Commerzbank.

The Fed has even found that there was now due to the lower surplus in China's current account is no scope for a greater appreciation.

No relaxation in the monetary dispute

In order to justify the actions of the Chinese, the Commerzbank consider two interpretations plausible. "Either it is simply a ploy or Chinese, Beijing has decided to tie the yuan to a basket of currencies in the future," wrote Karpowitz.

Renminbi is the official name of the country's currency yuan is only the currency unit, that the real money. Often, the yuan is also incorrectly referred to as the Chinese currency.

On the Japanese stock market, the players were glad, however, that the renminbi has not yet been upgraded. Many investors are concerned that an appreciation of Chinese currency is more expensive, the Japanese yen.

As the yen did not rise, investors bought the lot and widely dispersed, which boosted the markets. Earlier, investors had assumed that the People's Republic of changes in the exchange rate against the dollar is only slowly and in the smallest possible steps.

Burden on the G-20 Summit

The notice and the return of the Chinese rowing over the weekend has potential implications for the G-20 summit in Toronto, which is imminent. The appreciation would have been put into the dispute over the trade imbalance. Now it looks as if it would give in the People's Republic is not as strong as anticipated earlier.

For almost two years, the yuan pegged to the dollar. It has entered China, especially in the United States accused of keeping its currency in the interest of exports at artificially low.

0 Comments:

Post a Comment

<< Home