Read this excellent article
http://www.dnaindia.com/report.asp?newsid=1175261
257 billion dollars in inflows in the first five months of 2008
12 year high inflation which can only be controlled if the currency has value
Rising gold imports as people hedge against inflation.If the government does not intervene people will lose faith in the currency and this will be avoided.China has too many geopolitical problems as it is with income disparity between the prosperous South and coastal areas and the inner China.
http://in.reuters.com/article/asiaCompanyAndMarkets/idINPEK34...
The government is on the ropes and will have to let the yuan go free soon.
$25.6 (07/03/08)
