Tuesday, May 15, 2007

Renminbi (Chinese Yuan) to rise soon?

A Chinese news report here details the current Chinese investment frenzy. The market doubled last year and has grown 50% so far this year. The interest on bank accounts is less than inflation, which is running at 3%, so private investors are raiding their accounts for money to speculate on stocks. One way to cool things down is to raise interest rates.

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