Signs have emerged in the past two weeks that China is paving the way for its currency to start appreciating. It may take a year or two to see even a 10% or 20% rise, and practically nobody else is writing about this at all (which surprises me), but this will mean big ramifications for investors. Under steady pressure from the United States, Chinese policy planners have generally shrugged at the prospect of letting its currency appreciate. In recent months, other trading partners in Asia, along with emerging powerhouses such as Brazil have also chafed… Read More
Signs have emerged in the past two weeks that China is paving the way for its currency to start appreciating. It may take a year or two to see even a 10% or 20% rise, and practically nobody else is writing about this at all (which surprises me), but this will mean big ramifications for investors. Under steady pressure from the United States, Chinese policy planners have generally shrugged at the prospect of letting its currency appreciate. In recent months, other trading partners in Asia, along with emerging powerhouses such as Brazil have also chafed at a currency policy that has been seen to help China and hurt the rest of the world. Although the rising pressure has certainly been noted in Beijing, Chinese planners have long sought to let their currency appreciate when they’re good and ready. That time finally seems to be at hand. Laying the groundwork China’s currency has actually begun to modestly appreciate in recent months. Six months ago, 10 yuan were worth about $1.46. That figure has steadily risen to a recent $1.52, though many economists think that if… Read More