My "speculation" about the revaluation of Yuan

Yes, people are speculating more and more on the

appreciation of Yuan.  Bankers and fund managers in

different organizations all believe that yuan will

appreciate in a short time. From the angle of the

reporters, we can see different speeches or viewpoints

from Chinese officials,and diffrent measures for them

to reduce the pressure on Yuan. But I do believe the

bankers should have some reason to do such

speculation. One of them, I think, is that U.S

dollar's devaluation has put great measure on Yuan.

There is an exaggerated news whose headline is "U.S.

dollar's devaluation equals with robbing money from

Chinese's porket". For instance, with the U.S.

dollar's devaluation, China's Foreign reserve, most of

which are in the currency of dollars, has devalued

about 10%. Also, People's Bank of China needs to buy

more gold from the international markets to maintain

the foreign reserve. But the gold price has been more

expensive, marching above 455 dollars per ounce this

week, the highest price in 16 years. I am not sure if

China can resist the pressure or not.