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03 Nov 09

This article talks about the weak RMB and how it affects trade between the US, China and Europe

The Americans get the toys, the Chinese get the Treasuries and we get screwed.” Thus a European Union official once characterised the pattern of Beijing accumulating US assets by selling renminbis for dollars, while nothing stood in the way of a rapid and destabilising appreciation of the euro.
A string of countries including Thailand, Malaysia and South Korea have intervened either verbally or in the foreign exchange markets in recent weeks to slow the rise of their currencies.
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- Mr Lyons says that the east Asians are wary of allowing the same to happen to them. “There is a concern that if they let the exchange rate rise, it will attract a lot of hot money but hit confidence,” he says