Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (14000)	10/25/2004 12:57:13 PM
From: RealMuLan	Read Replies (2) \| Respond to of 116555

China sees value of stronger currency - report Monday, October 25, 2004 7:07:24 AM afxpress.com HONG KONG (AFX) - Chinese leaders have held several lengthy meetings in the past few weeks to discuss revaluing the yuan but have decided not to tinker with the system in the short term, the South China Morning Post reported, citing unnamed sources The paper said more officials had begun to recognise the benefits of a stronger yuan and believed the time was ripe to consider a more flexible currency However, the Beijing leadership decided to weather mounting international and domestic pressure and keep the yuan stable in the short-term because of concerns about the impact of a flexible currency on the country's banking system and the influx of so-called hot money on the domestic economy, the newspaper said "The mainland's reforms of its banking system are at a critical stage. They want to be sure the fragile banking system can handle this," one source was quoted as saying One uncertainty is the influx of hot money -- speculative inflows of cash seeking to profit from a revaluation -- and its impact on the economy "Billions of US dollars believed to be hot money have made their way into the mainland banking system in recent months, waiting for the yuan to appreciate. That has made the Chinese leaders sweat because they have no idea how much there is there," a source said futures.fxstreet.com