Hong Kong OfficiaI Says Yuan Peg Is 'Not an Option' - WSJ.com
When an official says something like this, this means its being discussed and there are many stakeholders that consider this to be a much better option for Hong Kong. The reason that it is not feasible now, is that once its convertible in Yuan, Hong Kong's currency will become the natural recipient for these that desire to gain exposure to the Yuan. This will mean that there will be lots of hot money inflows and outflows.
Hong Kong OfficiaI Says Yuan Peg Is 'Not an Option' - WSJ.com
posted by glenzo @ 3/01/2011 12:54:00 PM
1 Comments:
It's not feasable right now only because the Yuan is not convertable. As the US dollar continues to devalue, and US debt conntinues to mount and the Euro in flux, you only have Yen and a few smaller economies to fall back on. The world is clamouring for a new currency and the only country able to fill that gap in the long run is China. It's hard to believe that the second largest economy on earth is still playing with monopoly money.
That won't go on forever.
Post a Comment
<< Home