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Yuan Roundup

Posted By Barry Ritholtz On July 22, 2005 @ 3:15 pm In Currency,Financial Press | Comments Disabled

The WSJ does there usual excellent job, producing a terrific roundup [1] of all the related stories re the de-pegging of the Yuan.

China Drops Yuan’s Peg to Dollar [2]
China dropped the yuan’s peg to the U.S. dollar and will let it float in a tight band against a basket of currencies. The Bush administration praised China’s decision but said it plans to monitor the implementation.

China’s Move Suggests Embrace of Flexible Rates [3]
China’s decision to revalue the yuan marks a big step in the 30-year evolution of the global financial system toward more market-driven, flexible exchange rates.

China’s Move Strengthens White House Hand [4]
Beijing’s decision to revalue the yuan is taking some of the steam out of the anti-China engine chugging on Capitol Hill. But not much.

Revaluation May Help Bring Balance [5]
China’s move could lead to a decline in the dollar and upward pressure on long-term rates. It will affect many industries, but the impact is expected to be relatively minor.

Yuan Move Reflects Mounting Pressure [6]
China’s yuan move marks a solid down payment on pledges to act responsibly as one of the world’s biggest economies, but it also risks putting the country’s financial system more at the mercy of volatile currency markets.

Economists Say Move Gives Flexibility [7]
China’s decision will give it greater flexibility to focus on its domestic monetary policy and tinker with its exchange rate – a positive change as China opens its doors to world trade, say economists. In the short run, however, a wave of speculative money could upset those plans.

Schrödinger’s Basket [8]
Because China’s currency-basket makeup will affect perceptions of, say, China’s demand for Treasurys, being first to figure out what’s in the basket and when the basket has changed will probably be a profitable pursuit.

The Two-Percent Solution [9]
News Analysis: China’s decision to let its currency appreciate surely wins the country political points in Washington. But for how long? Probably not very. And that means trade flaps — and questions about U.S. competitiveness — will probably stay right on the front burner.

Treasury Yields Climb on Yuan Decision [10]
U.S. interest rates were higher on China’s yuan decision, but the mystery surrounding the move left many investors wondering what the longer-term effect may be on consumers.

Europe Welcomes China’s Yuan Move [11]
European officials welcomed China’s move to drop its currency’s peg to the U.S. dollar, which raised hope that a gradual appreciation of the yuan and other Asian currencies will make European exports more attractive globally.

Asian Shares Could Get a Lift [12]
The yuan’s revaluation should give a boost to Asian shares as China’s move is seen as just the beginning of a longer-term strengthening of the yuan.

FAQ: China’s Yuan Revaluation [13]
China finally moved to revalue its currency. Here are answers to questions about what it might mean for interest rates, inflation and trade.

A Brief History of Exchange Rates [14]
News Analysis: Though many economists believe the global economy functions best when major economies’ exchange rates are flexible, this wasn’t always the case. An examination of the history of exchange rates.

Multimedia & More

Q&A: What it means for rates, trade, prices [15]

Econoblog: What’s next? [16] | D.C., Wall Street react [17]

Timeline: China’s Hot Decade [18]

Graphic: Stock futures’ wild ride before opening bell [19]

Go Figure: What move means for fund investors [19]

Background: History of floating exchange rates [20]

Video: Treasury Secretary Snow applauds step [21]

China bank’s statement [22]

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/07/yuan-roundup/

URLs in this post:

[1] terrific roundup: http://online.wsj.com/page/0,,2_1170,00.html

[2] China Drops Yuan’s Peg to Dollar: http://online.wsj.com/article/0,,SB112194425798991972,00.html?mod=2%5F1170%5F1

[3] China’s Move Suggests Embrace of Flexible Rates: http://online.wsj.com/article/0,,SB112199589456992966,00.html?mod=2%5F1170%5F1

[4] China’s Move Strengthens White House Hand: http://online.wsj.com/article/0,,SB112198926770292788,00.html?mod=2%5F1170%5F1

[5] Revaluation May Help Bring Balance: http://online.wsj.com/article/0,,SB112198988304292815,00.html?mod=2%5F1170%5F1

[6] Yuan Move Reflects Mounting Pressure: http://online.wsj.com/article/0,,SB112195684600092154,00.html?mod=2%5F1170%5F1

[7] Economists Say Move Gives Flexibility: http://online.wsj.com/article/0,,SB112195841605792185,00.html?mod=2%5F1170%5F1

[8] Schrödinger’s Basket: http://online.wsj.com/article/0,,SB112199570368792957,00.html?mod=2%5F1170%5F1

[9] The Two-Percent Solution: http://online.wsj.com/article/0,,SB112197479513892468,00.html?mod=2%5F1170%5F1

[10] Treasury Yields Climb on Yuan Decision: http://online.wsj.com/article/0,,SB112195101626992057,00.html?mod=2%5F1170%5F1

[11] Europe Welcomes China’s Yuan Move: http://online.wsj.com/article/0,,SB112195761417792173,00.html?mod=2%5F1170%5F1

[12] Asian Shares Could Get a Lift: http://online.wsj.com/article/0,,SB112197467337892462,00.html?mod=2%5F1170%5F1

[13] FAQ: China’s Yuan Revaluation: http://online.wsj.com/article/0,,SB112195668788292150,00.html?mod=2%5F1170%5F1

[14] A Brief History of Exchange Rates: http://online.wsj.com/article/0,,SB112195084191892053,00.html?mod=2%5F1170%5F1

[15] Q&A: What it means for rates, trade, prices: http://online.wsj.com/article/0,,SB112195668788292150,00.html?mod=2_1170_2

[16] Econoblog: What’s next?: http://online.wsj.com/article/0,,SB112195421057192103,00.html?mod=2_1170_2

[17] D.C., Wall Street react: http://online.wsj.com/article/0,,SB112195563846692122,00.html?mod=2_1170_2

[18] Timeline: China’s Hot Decade: http://online.wsj.com/public/resources/documents/info-yuantimeline05.html

[19] Graphic: Stock futures’ wild ride before opening bell: http://www.ritholtz.com/blogjavascript:window.open(

[20] Background: History of floating exchange rates: http://online.wsj.com/article/0,,SB112195084191892053,00.html?mod=2_1170_2

[21] Video: Treasury Secretary Snow applauds step: http://online.wsj.com/public/page/0,,8_0000-fq0|Yu2HDac6lT_aM6JN9fmXWHys_UQY-NA5ps6Mwzb48jbaZpQ9NkXDSh9oTnI0r,00.html?mod=ARTICLE_VIDEO

[22] China bank’s statement: http://online.wsj.com/article/0,,SB112194598718691984,00.html?mod=2_1170_2

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