Some strategists are betting that China will hike the yuan in April…
But then, in response to Obama’s most recent call for a yuan hike, a Chinese central banker has come out and said this:
“We believe the yuan exchange rate issue will not help shrink or increase our trade surpluses and deficits (in the U.S. or China),” Mr. Su said on the sidelines of the meeting of the National People’s Congress.
“We don’t agree with politicizing the renminbi exchange rate issue,” Mr. Su said. “We also don’t agree with a country taking its own problems and having another country solve them.”
Keep in mind this is the man who famously said China’s U.S. treasury holdings were unsafe last year.
As George Soros has pointed out in the past, it might be best to act as if China doesn’t like to be told what to do. They’ll hike the yuan if its in their interest and that’s it. So the U.S. needs to show them how it is in their interest if the U.S. wants it to happen.
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