Billy:
I 100 PCT agree with you. Just some numbers to back up that China
won't devalue its currency: Since financial crise last July, China
has kept its currency RMB value tie to about 1 USD = 8.27 RMB.
Unlike other southeast nations, China has 140 billion US dollar
foreign reserve, and its short term debt is 14% of its total debt.
With almost southeast asian nations plus Korean and Japan currencies
like free fall, everybody thinks that China should devaluate its own
currency, otherwise its export won't be competitive. Guess what?
first 5 months of 1998: china's total import & export reaches
123.7 billion US dollar, an 10+% increase over 1997, with trade
surplus about 18.5 billion USD. Chinese government has about
12 billion USD debt to Japan, in Japanese Yen. With Yen now trade
at 143 level, actually saves chinese a lot of money.
Another example is Indonesia: Last year when I went there, 1 USD
is 2200 Rp, last month when I was there, (in the worst time of riots)
1 USD is 10000 Rp, now is 12500 Rp. But does Indonesia gain any
strength in their export? No! Instead, they get high inflation rate.
It's terrible there. (If you are a traveller, you pay much much less
in US dollar,if you are willing to take that risk). I believe
politically and economically, chinese know what they should do |
