21.7.05

Yuan's slow devaluation

The news of the month is that China today ends yuan dollar peg. It's not as broad as some expected but instead very gradual move.
Having in mind political and economical consequences , this is one of the most important events for the global financial markets this year.
Will see how far chinese policy makers will go.
This quote is very telling:
"It's just a gesture. The question now is whether there will be continuing speculation that China may revalue even more," said Ben Kwong, an analyst from KGI Asia in Hong Kong.

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