Geoff Dyer writes at ft.com that Zhou Xiaochuan, governor of the People’s Bank of China, has said that the peg of the Yuan to the U.S. dollar was a “special” policy to weather the financial crisis. Not allowing the Yuan to rise in value has been criticized as distorting the cost of Chinese goods, keeping them too low in international markets for the maintenance of healthy balance of payments (for trading) around the world. Criticism has been particularly strong from the United States.
Other Chinese officials have indicated recently that China was not likely to allow the Yuan to be revalued. It is not clear whether Xiaochuan's statements reflect a change in policy or a disagreement among China's leaders.
There have been recent speculations reported about Yuan revaluation and other possible moves that China may take to address the imbalances in international trade.
Disclosure: No stocks mentioned.
Yuan Peg to the Dollar is "Temporary"
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.