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July 21, 2005
repeg
Well, China made their move, they repegged the yuan(renmingbi). 2%! Economists were definitely expecting a more realistic peg. But like my Econ professor had mentioned, there might be some cultural reasons for not moving it out of the 8 region. Also, the yuan is now pegged to a basket of currencies, definitely a good idea.
Another China news item, CNOOC and the Unocal bid. Very interesting in light of the fact that U.S. congressmen see a problem with China owning this energy source for billions of dollars while China is holding U.S. notes worth trillions. This is a story where politics trumps the idea of a global efficient market.
Posted by azileretsis at July 21, 2005 09:27 AM
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