Hopes are growing that China will soon revalue the Yuan
Sources inside China and among currency traders in the Far East are increasingly of the view that the PRC will revalue its currency – possibly by as much as 7% – in the immediate future. Observers hope the move will slow down both economic growth and rising asset prices within the People’s Republic itself, while making Western goods more competitive in all markets where China is active.
Senior Chinese officials are keen to stress that having been revalued, the Yuan will remain tied to the US Dollar at the new rate of exchange. But The Slog continues to believe that this is merely holding back market forces, and cannot be sustained.