jiesen
10-29-2006, 11:20 PM
http://biz.yahoo.com/ap/061029/china_currency.html?.v=4
Am I reading this correctly?
China allows the dollar-yuan rate to move no more than 0.3 percent above or below the daily parity rate each day, with other currency pairs -- the yuan's values against the Japanese yen, Hong Kong dollar, euro and British pound -- allowed to move within 3 percent of the parity rate each day.
So if the dollar takes a >3% dive against those other currencies in one day, then China will flood the market by selling dollars at a cut-rate price in yuan? Uh oh...
Am I reading this correctly?
China allows the dollar-yuan rate to move no more than 0.3 percent above or below the daily parity rate each day, with other currency pairs -- the yuan's values against the Japanese yen, Hong Kong dollar, euro and British pound -- allowed to move within 3 percent of the parity rate each day.
So if the dollar takes a >3% dive against those other currencies in one day, then China will flood the market by selling dollars at a cut-rate price in yuan? Uh oh...