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A US$ 1 Trillion Question: Is The Current Chinese Exchange Rate Regime Sustainable?

A. Laure Baldi-Delatte

Abstract

The recent surge in China’s foreign exchange reserves (one trillion US$ in October 2006), is behind this update analysis of the domestic issues that it raises. The speculation on a future appreciation of the yuan has recently boosted money growth in China. Some controls on capital inflows reduced short-term capital in 2005 and 2006 but this has been compensated for by a surge in the trade surplus. This has resulted in abundant liquidity in China responsible for distortions which this article endeavours to analyse.

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References

Electronic reference

A. Laure Baldi-Delatte, « A US$ 1 Trillion Question: Is The Current Chinese Exchange Rate Regime Sustainable? », China Perspectives [Online], 67 | september-october 2006, Online since 01 June 2007, connection on 21 August 2017. URL : http://chinaperspectives.revues.org/1046

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