In the 1980′s classic “Bloodsport”, the famous Hong Kong Kung Fu action star Bolo Yeung plays the character of a champion fighter who kills a fellow contestant before fighting Jean Claude Van Damn in the final. Despite the constant cheating of Bolo, It ends as Van Dam places him in a neck breaking lock and Bolo is forced to shout….”May Tay!!!…or Uncle.
One could imagine that President Obama had some serious ramifications on Chinese trade policy ready to put in place had Premier Wen not agreed over the weekend to some secretive RMB appreciation schedule. My guess today is high placed Democratic donors are now rushing to buy long calls on the RMB.
* China to allow more yuan flexibility in either direction -Wen
SHANGHAI, Nov 19 (Reuters) – China will make the yuan more flexible in either direction and recent reforms to make the currency more market-oriented have begun to achieve some results, Premier Wen Jiabao said on Saturday.
“China will continue to closely monitor the yuan’s trading movements … and will strengthen yuan’s trading flexibility in either direction,” the premier was quoted as saying in an evening news bulletin on state broadcaster CCTV.Wen’s comments on the yuan were in line with recent central bank moves to encourage the yuan’s value to fluctuate more widely within the daily trading band. The People’s Bank of China (PBOC) allows the yuan to rise or fall 0.5 percent from its daily mid-point.
Some analysts and traders have argued that the central bank has been laying the groundwork for a widening of the trading band, which would allow China to say in the face of renewed U.S. pressure over the yuan that it is indeed moving ahead with reform to loosen its grip on the currency.
source: ChinaMoneyReport
