June 21, 2010
Yuan peg to dollar ending after two years
Bloomberg reports on the now free-floating yuan:
"China said it will allow a more flexible yuan, signaling an end to the currency’s two-year-old peg to the dollar a week before a Group of 20 summit. "
The Chinese have been weathering import problems because of the peg, and now that it is loosened, the obverse problem of exports, especially in textiles, will become trouble for them. With a clear intent to get themselves firmly into Europe, China needs the Piraeus deal to help facilitate this, which in turn helps their move to avoid collapse for many Chinese companies dependant upon exporting, and the Chinese banks that are holding iffy loans for those companies.
Related:
China to put 10 billion into Pireaus work - June 2010
China "to the rescue of Greece?" - January 2009
Greece's Golden Visa program
