Sunday, January 15, 2017

OANN — China should stop intervening in FX market and let yuan float: researcher

China should stop intervening in the foreign exchange market, devalue the yuan and let it float freely to restore stability, a senior researcher at a government-backed think tank said.
Xiao Lisheng, a finance expert with the Chinese Academy of Social Sciences, made the remarks in an article on Monday in the official China Securities Journal amid a growing debate among the country’s economists on whether authorities should let the closely-managed currency trade more freely.
The yuan lost 6.6 percent against the dollar last year, the biggest annual loss since 1994.
“The more the government delays the release of depreciation pressure, the greater the impact and destructive power of the release of depreciation pressure will be,” Xiao wrote.
The authorities should “let the yuan exchange rate have a one-off adjustment to realize a free float” of the currency, he said.…
Cut it loose.
Reporting by Winni Zhou and John Ruwitch; Editing by Kim Coghill

6 comments:

Ryan Harris said...

Allowing the RMB to float allows people to express views that may not promote communist party objectives, possibly even breakdown harmony and cohesion by expressing counter revolutionary thought. US thought leaders tend to only think about a currency in 'economic' terms but currency also offers a lever toward social and political control as well.

Andrew Anderson said...

[Request to Tom Hickey]

Naked Capitalism has a post today - "More on the Economic Hardship of Young Adults " - that I'd like to comment on but can't since I'm in permanent moderation there - not for abusive language, etc. but simply, imo, because I disagree with Yves. Her site, her rules but let no one imagine that genuine discussion is allowed there as, I've found, it is here.

So please repost "More on the Economic Hardship of Young Adults " here?

As you please, of course.

Matt Franko said...

USD zombies still in control over there....

Auburn Parks said...

Andrew-

Youre in permanent moderation over there for the same reason I've complained about your behavior here multiple times. You keep repeating the same garbage over and over again "Deposit insurance protection for bank customers is conspiracy to forcec us all to use banks instead of fiat blah blah blah"

Its just so stupid. Thats why you're not welcome, not because you disagree with the site owner

John said...

Ryan: "Allowing the RMB to float allows people to express views that may not promote communist party objectives..."

Exactly. As things stand, that's why it'll only be done extremely gradually, as and when the CP sees fit, with the key factor being how quickly they can reorient their economy away from an export driven model to a consumption driven model. With Trump declaring China enemy number one, the strange thing is that both routes (float and not float) are equally conceivable!

Andrew Anderson said...

AP,

What need for government-provided deposit insurance since accounts at the central bank are inherently risk-free since a central bank can always meet its liabilities for fiat? So then why can't all citizens, at least, have accounts there and deal with their Nation's fiat the same way the banks do - in account form and not be limited to mere physical fiat?

This is a very fundamental question wrt equal protection under the law, i.e., why can't citizens deal with their own Nation's fiat the same as banks do?