China’s Central Bank had released a statement on Yuan Reform seeking to defuse international pressure.The statement which rambled about recovery,BOP,world macro situation,yuan history had a brief line about proceeding with currency reform.Even this one line had the US and IMF praising China for moving ahead to correct the yuan’s depreciated value against the US Dollar.I […]

China and US Tensions increasing on Currency Valuation The US Senate and President Obama have been increasing pressure on the Chinese Government to revalue the yuan and let it move towards a market determined rate.China’s yuan peg to the dollar has been one of the main factors around which the debate of global imbalances has […]

China has again come under increasing pressure from the US to appreciate the yuan against the US Dollar removing the hard peg it has against the Dollar.The US Senate is also piling up the pressure against the Chinese by proposing sanctions such as import duties on Chinese imports.While the US Government had delayed any potential […]

ChineseĀ  Cyber Attacks South Korea blamed Chinese sources for a Distributed Denial of Service (DDOS) attacks on its Government Websites.South Korea and North Korea have been on tenterhooks after South Korea found one of its warships sunk by a North Korean torpedo.China is a close ally of North Korea through Communist Party links and has […]

The G20 Meeting between the Financial Heads of the the G-20 Countries exposed the rift between the world’s 20 most important economies.The issue of fiscal deficits,exports and currencies were at the forefront of discussions .The sharpest difference was between US which wants Europe and other developed countries to increase domestic demand and the European countries […]

The sharp appreciation of the yuan against the Euro and the other currencies would make China think of depreciating the yuan against the dollar rather than expectations of appreciation by most non-Chinese Countries.The 15% Euro depreciation due to the Greek Contagion has had a devastating effect on low margin Chinese companies which run on paper […]