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Zhou Xiao Chuan: good timing
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China's long-awaited revaluation of its currency, the renminbi, has had a modest impact on the international financial markets. However, the move, which saw the renminbi revauled upwards by 2.1% in June, looks well timed. The new system, which sees the renminbi managed against a basket of currencies as opposed to being held at a fixed rate against the dollar, is suitably flexible for China's immediate purposes. At the same time, it panders somewhat to the China-bashers in the US Congress, the more vociferous of whom had been barking for a revaluation of more than 25%.
Basket
Of course that was never going to happen, but China's move is more than just a sop to US politicians looking for scapegoats for the structural weaknesses in their own economy. In a later statement, China's...
