central bank Governor Zhou Xiachuan rejecting any speculation that the Chinese would time a revaluation announcement with the expansion in the domestic foreign exchange market beginning May 18th. The Governor flat out said that the media reports on the expected appreciation of the Renminbi on May 18th are completely unsubstantiated. His comments come after a report in the People’s Daily Newspaper suggested that the country’s currency would be revalued next week. In fact, some economists from the major investment banks put the timing of intervention as early as sometime over the next month. Whether this is true or not remains to be seen, but revaluation is inevitable and when it does occur, USDJPY will be first to react.
Yen Gives Back Gains As China Denies Revaluation Rumors
Sat May 14 21:22:00 GMT 2005