Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (26017)	12/11/2002 10:37:07 PM
From: Moominoid	Read Replies (1) of 74559

The idea behind revaluation is that as economies develop the gap between the exchange rate and the PPP exchange rate might narrow. Also with a current account surplus you might expect appreciation. Actaully, if China does have a surplus (need to check on that - Economist has $17.4 Bil for 2001 not so high then) where are they investing their surplus savings? They do have $258 bil in foreign reserves...

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