The year ends well for the Chinese currency. The exporters of the celestial empire will not agree, but the western chancelleries, which have been pressing for years for the revaluation of the yuan, see their wishes, if not completely fulfilled, moving in the right direction. In Asia, the yuan/renmimbi marked a record appreciation against the dollar this morning, to 6.325, and therefore appreciated even more against the euro a few months ago, given the latter's weakness against dollar.
Not everyone is unhappy, however, in China. Consumers should appreciate appreciation, since it lowers the cost of imported goods, and it becomes easier, or less difficult, for policy makers to control inflation. This revaluation trend is part of a more general trend towards internationalization of the yuan, also underlined yesterday by the Sino-Japanese currency agreement, which promotes a direct yuan-yen payment system, without dollar mediations.
http://usa.chinadaily.com.cn/business/2011-12/27/content_14332713.htm
http://online.wsj.com/article/SB10001424052970203391104577121983605242196.html?mod=djemITPA_h
