Chinese back yuan amid talk of revaluation

[UpInArms]

http://www.theage.com.au/articles/2004/02/22/1077384636106.html

A Chinese rumour, according to an old China-watching saying, is not confirmed until it has been denied by the authorities.

Chinese investors and businesses appear to be taking the same attitude to repeated denials by their central bank, the People's Bank of China, and government leaders that a revaluation of the yuan is imminent.

<snip>

A report two weeks ago in a financial newspaper controlled by the stockmarket authority said China would move next month from its decade-old peg of 8.28 yuan to the US dollar to a rate set against a basket of currencies, and would carry out an upward revaluation of 5 per cent.

...more...

[AwareOne]

1. What will this mean to the U.S. dollar

and the cost of Chinese exports?

[madrchsod]

2. not much

wal-mart would just squeeze more blood out of their suppliers and thier workers. wal-mart nation will never know the difference

[54anickel]

3. Saving deposits up by 18.6% in one month?!? Wow, there's a lot to

be said about "verbal intervention". Wonder if this was the original intent? Hard to say with that backwards logic on the rumor/denial/news. :shrug: