27 since last month, Brazil's Finance Minister in a speech, declared that since the war the world has entered the currency, the currency of war seems to have become a worldwide hot topic. British media and expert analysis, next month's summit of the Group of Twenty, the RMB appreciation issue will be focused on.
British magazine website "The Economist" published in the Oct. 14 article titled "How to stop the currency war" article. Article points out that currency intervention is the current form of conflict between countries, and some developed countries to print money, and some emerging economies, foreign capital inflow restrictions, have also contributed to world economic imbalance. So, just focus on the exchange rate between the U.S. negotiations in the international environment, it is not comprehensive.
Royal Institute of International Affairs, Kerry Brown, a senior researcher believes that U.S. pressure for revaluation of the RMB in China mainly for economic and political considerations, and the reality of Sino-US trade surplus with the U.S. mid-term congressional elections, and the United States because of China's economic, political, diplomatic, and military power and other factors arising from anxiety. How will further pressure the United States, as well as the future trend of the renminbi in the short term, Brown has done so expected: Barack Obama in the RMB exchange rate issue is not to attempt to bill through Congress, except in the mid-term elections later. By that time, he would propose to Congress to decide whether imposition of export restriction to China Customs. I guess when China will speed up the pace of appreciation, there may be a 5% appreciation.
But Brown added that if the U.S. really speaking for the establishment of punitive restrictions on exports to China, it would be the practice is a violation of WTO rules, it will be the new beginning of a trade war.
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