China's new forex rate formation mechanism is credit positive as it will increase currency flexibility and support China's capital account liberalization, said Moody's in a recent report.
The People's Bank of China on Tuesday adjusted the exchange rate formation system to close the gap between a lower central parity rate and market expectations.…ECNS.cn
Moody's: China advances exchange rate reform, a credit positive
Xinhua
1 comment:
Bitter sweet for emerging markets when a big developed industrialized nation suddenly changes their economic model to have less real development and demand for resources and begin to move to a post-industrial speculative financial economy.
The benefits to the rest of the world will be a return of all those factory jobs that China no longer wants. They are quickly moving to the emerging markets where industrialization is proceeding. Now the developing nations themselves gobble up all the resources as their rural agricultural populations continue to descend on to cities.
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