24-11-2007
Another useless step
| Central Bank of China Deputy governor Su Ning has fended off another round of pressures on exchange rates, this time coming from Europeans. After last G7 Meeting, Europeans have stopped complainig about the weak dollar, probably persuaded by Paulson at joining forces to pressure Chinese. In an official statement, Su Ning has hinted at further broadening of current 0.5% fluctuation exchange band, but has also reinforced the official view that currency appreciation will have to happen gradually. Neither Americans nor Europeans are in condition to force Chinese to go any further, as their companies have long ago outsourced hefty portions of industrial output to China and India. It is an old trick for politicians, to compalin for others'faults when things do not work at home. |