Yuan hopes in China talks?
Posted by Stephen Cline on April 10th, 2010The Treasury Secretary of the US, Tim Geithner has had talks with the Chinese vice Premier Wang Qishan recently. While currency was not mentioned directly, there seem to be some Yuan hopes in some quarters. Some people are of the belief that China will be able to allow the Yuan to appreciate amid a lot of international pressure to do so. While there is no talk of any breakthrough, the very fact that there have been talks is able to raise these Yuan hopes. There were statements released by both sides that did not mention the Yuan word per se, even though it was clear that these were touched upon. In any case, official statements always do not reflect what all transpires in such meetings and just because it was not mentioned specifically in the statement does not mean it has not been mentioned at all.
It is being seen and hoped in international quarters that in view of the global economic crisis, the Chinese government may after all come close to a decision to end the peg of the Yuan to the dollar which is increasing its value and affecting international trade adversely. While an official action is awaited, there is work going on in the sidelines on this.
Tags: China talks, Yuan hopes