Chart of the day: China's loosened peg changes little
Thursday, July 29, 2010 at 12:01AM
Thomas P.M. Barnett in Chart of the day, China, US, global economy

WSJ story noting that, after China's pledge to ease its peg to the dollar, the yuan has gained a whopping 0.7% over a month. Based on the 2005 de-pegging, no big change as hoped for.

Early judgment, yes, but the first month gives a strong hint that we won't get much relief this way.

The fight for depegging within China has been led by the People's Bank of China, but for now it seems that this view has not won out.

So expect more Congressional threats and some action, after a while.

Next pressure point will be the IMF's review of the Chinese economy.  China and the IMF have feuded specifically over this issue.

Article originally appeared on Thomas P.M. Barnett (https://thomaspmbarnett.com/).
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