-Sent from my BlackBerry® phone- Ronald e-Mail -----Original Message----- From: MeLinda MeLisa <[email protected]> Sender: [email protected] Date: Wed, 9 Feb 2011 11:51:13 To: <[email protected]> Reply-To: [email protected] Subject: [StockForex] China Should Cut Dollar Assets - former c.bank adviser China Should Cut Dollar Assets - former c.bank adviser Wednesday, February 9, 2011 - http://marketpin.blogspot.com/ China should cut holdings of dollar assets to limit losses on its foreign currency reserves, while letting the yuan move more freely, a former adviser to the People's Bank of China said in comments published on journal. "China should now reduce its holdings of dollar assets as far as possible, rather than increasing holdings," Yu Yongding, an academic member of the central bank's monetary policy committee until 2006, wrote in an article in the latest edition of Caijing magazine. "This means the central bank, to avoid further rises in foreign exchange reserves, must reduce its intervention in the foreign exchange market," he said. "Reducing intervention means the exchange rate will appreciate in line with market supply and demand," he added. China's foreign exchange reserves, the world's largest, hit a record $2.65 trillion at the end of September, a reflection of heavy-handed intervention to hold down the yuan's value Yu, a professor at the Chinese Academy of Social Sciences, a top government think-tank, has long championed a more market-driven exchange rate regime. Yu has also long held a bearish outlook on the U.S. dollar, which he reiterated. Monetary easing to stimulate the flagging U.S. economy may in reality fuel U.S. public debt and inflation, which in turn pointed to persistent dollar weakness, he said. The real purpose of the policy easing was to accelerate the dollar's depreciation and boost U.S. export competitiveness, he said. "Facing the dollar's depreciation and worsening inflation, holders of U.S. government debt, particularly foreign holders, will dump U.S. debt to avoid further losses," he said China will curb its reliance on exports sooner than the U.S. can cut its budget and external deficits, removing a support from the dollar that will unsettle currency markets, Morgan Stanley’s Stephen Roach said. “In the next three or five years China will move aggressively to increase its private consumption and reduce its surplus saving,” Roach, who is non-executive chairman of Morgan Stanley Asia Ltd., said in an interview in Oslo yesterday. “The U.S. talks the talk, but there is actually no shred of evidence whatsoever that America is going to reduce its budget deficit over that same period.” U.S, THE WORLD’S LARGEST BUGGET DEFICIT $1.5 trillion China may post a trade deficit as early as this quarter as imports outpace sales abroad, the government said last month. The country’s reliance on trade to fuel economic growth close to 10 percent is now fading as its consumers grow wealthier, removing a key incentive for China to support the dollar. At the same time, the world’s largest economy estimates its budget deficit will swell to a record $1.5 trillion this year, as President Barack Obama channels stimulus to revive growth. ------------------------------------ ## StockForex ## _________________ ::Forum:: All about Forex and Stock Trading ; all currency pairs. All Major World Indices, Asian Stock Index. and Individual/single stock. We're not goin' anywhere Well, it's all right here. Enjoy it !! :) _________________ http://finance.groups.yahoo.com/group/StockForex Yahoo! Groups Links ------------------------------------ Kunjungi situs http://www.info-saham.com untuk informasi seputar saham. SEMUA POSTING DI MILIS INI TANGGUNG JAWAB PENGIRIM EMAIL DAN BUKAN ADMIN MILIS. SEMUA POSTING DI MILIS INI BUKAN UNTUK MENGAJAK MEMBELI ATAU MENJUAL EFEK. SETIAP KEPUTUSAN INVESTASI MENJADI TANGGUNG JAWAB PIHAK PEMILIK INVESTASI ATAU PEMILIK MODAL. [email protected] untuk berhenti dari milis saham [email protected] untuk bergabung ke milis saham Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/saham/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/saham/join (Yahoo! ID required) <*> To change settings via email: [email protected] [email protected] <*> To unsubscribe from this group, send an email to: [email protected] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
