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Article: Stable RMB proponents weigh in
- Article from:
- China Daily
- Article date:
- January 27, 2003
- Author:
CopyrightCopyright 2003 China Daily. Provided by ProQuest LLC. (Hide copyright information)
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Things change fast.
Back in 1998, when East Asia was in the depths of a financial
crisis, the consensus view in the international market was that the
Chinese currency renminbi (RMB) was overvalued and doomed to crash.
Now the wind is blowing in the opposite direction.
The argument that the RMB, also called yuan, is undervalued has
been heating up since last year. Critics of China's foreign exchange
policy - a policy which seeks to maintain a stable exchange rate for
the yuan - cite China's surging export growth and swelling foreign
exchange reserves as support for their argument.
But according to Stephen Jen, co-head of Morgan Stanley's currency
research, these arguments are "of surprisingly ...