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Good Time to Buy Chinese Currency: Follow the 'Hot Money'

If there is a risk of stagflation, PBOC will look to raise interest rates and control it at the expense of growth. It will also cause the rate of funds inflow to slow as investors are usually scared off by the term stagflation... Things can turn around mighty fast as foreign investors get cold feet. Besides the pull out of funds willl be faster as is evidenced in India. Don't follow the hot money because it is very hot already.