Saturday, November 29, 2008

Chinese conundrum - Currency revaluation?

Chinese are a harried lot these days. With the US export pit having been filled, leading to a slowdown in the demand for the Chinese export, China is looking to several different ways to kick back its economy into higher gear again.

The constant devaluation against USD coupled with great economic growth, when things were going good, was manageable although it did give rise to hot inflows, which made returns on your investment one of the best in the world. But the 2008 has brought in a new set of challenges for the Renminbi and thus Chinese government is looking at various aspects of relooking at the managing of currency.

Have a look in the article with the link provided by MS on the changes that might be brought about in Renminbi regime.

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