Wednesday, July 18, 2007

China May Revalue Yuan by 3.5 Percent, Societe Generale's Maguire Says

(Bloomberg) -- China may strengthen the yuan by as
much as 3.5 percent in a single day to cool the economy and
appease U.S. lawmakers, said Glenn Maguire, chief Asia economist
at Societe Generale SA.

The world's fastest-growing major economy last revalued the
currency two years ago by 2.1 percent, abolishing a decade-old
fixed exchange rate, and has since allowed it to gain a further
7.2 percent. A report today may show gross domestic product rose
11 percent in the second quarter, pushing up inflation to a more
than two-year high.


Read more at Bloomberg Currencies News

No comments: