Mar
19
David Nepo Report - Peoples Bank of China [PBOC] said verseas funds bet on bigger yuan gains
Filed Under Offshore News, Offshore Productions
Overseas funds bet on bigger yuan gains.
* source: People’s Bank of China [PBOC])
The People’s Bank of China [PBOC] said Friday [March 14, 2008] it expects growth in consumer prices to remain raised above ground level in the first half, and warned all the offshore trader inflationary pressures could keep on an upward trajectory for a long period. The central bank of China also said the rate of growth in the economy was likely to 2008. The The People’s Bank of China said it would use interest rates to cool demand growth and overcome inflation while bank reserve ratios could be increased to help manage liquidity. Offshore Bank investors are betting on higher gains in China’s currency than domestic regular traders, China’s central bank said in a report today [March 19, 2008]. When you are trade over the counter in domestic and offshore markets and on the CME [Chicago Mercantile Exchange]. The domestic price of the dollar yuan forward was the highest in 2007 of the three markets, as of PBOC [People's Bank of China]. The Chinese yuan appreciated 7 (%) against the U.S. dollar in 2007, compared with a 10 (%) percent gain in its offshore forward price. Offshore traders are biding on a 12 (%) percent advance to 6.33 (+ or -) in the next 12 months in 2008, as shown in forward contracts.
