Friday, July 22, 2005
Economy_Let's give a surprise
Surprise, surprise. RMB is revalued.
When Premier Wen said we will revalue RMB in an unexpected time, we should have known it will happen.
When China's GDP growth reached 9.5% in the second quarter, we should have known it will happen soon.
When people think it is still too early to ask the revaluation, China has done that.
In an old Chinese saying, "succeed on unexpectedly doings". Now China did. Reporters are pretty busy yesterday, and I guess no one are prepared for that. Asian Wall Street Journal did a good job with two pages fullly covering the impact on various industries. In such urgent circumstances, the only way is to prepare it at any time.
The yuan closed at 8.1111 against the dollar at 3:30 p.m. local time from 8.110 yesterday, according to data on the State Administration of Foreign Exchange's Web site.
Is the revaluation just a beginning? Alan Greenspan, Federal Reserve Chairman said so; Japan's Finance Minister Sadakazu Tanigaki said so. Will Chinese officials said so?
Now RMB is floating; what Amy wonder is if bankers could trade derivatives right now, hedging on the value change every day?