Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Bear in mind, though, that since China abandoned the single currency peg, it can manage its US dollar exchange rates in distinct ways - it can, for example, discount the RMB¥ against the € when the € rises against the US$, rather than directly pegging against the dollar. That is, rather than pegging to the US$, it has the option of pegging to something else and shifting the peg to mask the fact that it is no longer pegging to the US$.

If they were doing that, the chart would look like a relatively flat RMB¥/US$ rate, but with more volatility than if the RMB¥/US$ rate was directly pegged.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Fri Nov 6th, 2009 at 06:19:49 PM EST
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