China has resorted to stealth intervention in the currency markets to amass US dollars, using indirect means to hold down the yuan and ease the pain for its struggling exporters as the global slowdown engulfs the economy.
A study by HSBC's currency team in Asia has concluded that China's central bank is in effect forcing commercial banks to build up large dollar reserves, using them as arms-length proxies in a renewed campaign of exchange rate intervention.
2008-08-26
US Dollar rebound results from Chinese stealth intervention
The Telegraph runs the following article which states that the USD rebound is coming from Chinese intervention:
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2 comments:
Telegraph has lots articles for USA economy lately. However, most of them are not correct. So will not read this one too.
Hmmm,
article is not good, but I read it anyway, because friend liquidating his gold shares because of it.
However I find comments very interesting.
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