Good find ....Thanks for that Samen
Let the currency wars begin .
"The exchange rate of the currency ( Yuan ) will decline if it
becomes necessary to support exports,"
Wow! it was obvious the Chinese must be hurting but to have
it said so clearly with no "ifs ", no "buts" , no weasel words .
Although he did refrain from adding "We will drive the currency
through the floor if that is what it takes to save our asses " .
Zhou, a member of the central bank's monetary policy committee,
also said policymakers should have moved sooner than last month to
loosen controls over the yuan exchange rate.
The days of the USD$ vs Yuan peg in the form we are familiar with
appear to be numbered .
From the above chart ...
The USD$ has depreciated against the Yuan .
It now takes fewer Yuan to buy an oz of gold ( Vs USD$ ) than it did
a month ago . That is Yuan appreciation
Vs the USD$ !!!
From the above chart ..
The USD$ has appreciated VS a basket of currencies ( The kitco index )
and the Yuan has appreciated even more than the USD$ in the last 30 days .
it appears that the market place is currently
driving the Yuan up
in value Vs most other currencies .