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Depreciation pressure on the yuan may become so great that Chinese currency intervention will...

Depreciation pressure on the yuan may become so great that Chinese currency intervention will soon be to prop up the currency's value, says a Ministry of Commerce researcher. "The yuan exchange rate (could) face a test like during the East Asia financial crisis of 1997-98," he says.
Comments (1)
  • NOTE THE WORD "COULD"... This is a way of saying "I have no idea" in less than three words. It fits like a glove, gets the writer off the hook like they guy at the hardware store that says, in answer to your need, "THIS SHOULD WORK".

     

    The value of a currency is far more immovable than most would think. It mirrors the ENTIRE economy of the country in question, and will be changed at will by their NGM's and not always to their advantage. I am learning fast that the NGM's don't always know what to do, nor its causes after the fact.

     

    Reading an article like this could cause an investor in CNY to get edgy, and bail, and miss the move he worked so hard to position himself for.

     

    I want lots more backup before this simple statement gels in my mind.

     

    Happy Gelling
    Capt. Brian
    The Lost Navigator
    27 Jun 2012, 07:12 PM Reply Like
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