Monday, May 9, 2011

A Brief Look at Yuan Valuations

With China continuing to see high inflation and the PBOC implementing a series of monetary policy tightening moves, the Yuan (or particularly the Yuan-Dollar exchange rate) has been highlighted as a potential inflation fighting tool. To be sure, there is also the ongoing chorus from the US urging China to allow a more flexible exchange rate. They say the exchange rate is artificially kept high; granting China an advantage in trade. So with these points in mind, and noting the impending talks between China and the US, it is timely to take a look at some Yuan data, and perhaps developing an informed view.

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