This month marks the one-year anniversary of China’s revaluation of
its currency. At the time, commentators and economists predicted China
would continue to incrementally revalue its currency, and gradually move
towards a market-based exchange rate. In reality, the Yuan has
appreciated by less than 1.5% against the USD, and American business
interests are once again calling for blood. The American political
establishment has responded by introducing a new strategy, one that
involves offering China a greater role on the
geopolitical stage in
return for dismantling the de facto peg to the USD. Specifically, the US
may help China negotiate a larger share in the International Monetary
Fund (IMF), so that it will have a greater ability to influence decision
making. The Wall Street Journal reports:
The IMF has been trying to get China-and by extension
South Korea, Taiwan, and some other Asian nations that track China’s
exchange rate- to reduce their reliance on weak-currency driven exports.
Read More:
U.S. Plots Deal Over Yuan Revaluation
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