China approaching perfect conditions for yuan revaluation - govt economist
Monday, October 11, 2004 7:10:55 AM
afxpress.com
SHANGHAI (AFX) - The right time to appreciate the yuan is approaching as the interest rate gap with the US is narrowing and there is a trade deficit, He Fan, a government think tank economist, said in the Private Economy News
He, the assistant to the director of the Institute of World Economics and Politics, said in an interview with the daily newspaper, that he expects the government to appreciate the yuan by around 10 pct. "People aren't expecting a yuan appreciation as the US Federal Reserve keeps on raising interest rates. Some hot money has already left the country and there was also a trade deficit in the first half of this year," He said, adding, "the right time for revaluation is when people don't expect it." He said the government will likely revalue the yuan quickly, to avoid speculation. Strengthening the currency would also make imported oil much cheaper, He added
Crude oil futures closed above 53 usd a barrel on Friday, breaking another record in New York and logging a gain of more than 6 pct for the week. Last month, Premier Wen Jiabao said China will maintain the stability of the yuan exchange rate |
