{"id":446798,"date":"2010-03-19T08:58:00","date_gmt":"2010-03-19T12:58:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:409960"},"modified":"2010-03-19T08:58:00","modified_gmt":"2010-03-19T12:58:00","slug":"china-revaluation-wont-mean-much-for-g-10","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/446798","title":{"rendered":"China revaluation won&#8217;t mean much for G-10"},"content":{"rendered":"<p>When China allows the yuan to appreciate again, the policy shift will come as no surprise to financial markets. But while the rising currency has an obvious and direct impact on Asian currencies (they should strengthen), a higher yuan may be immaterial for G-10 currency markets, according to a new report from J.P. Morgan.<\/p>\n<p>Open economies with a high export concentration to China would see their trade balances improve and growth accelerate, since a strong yuan would raise their exports. However, how stimulative this revaluation is depends on the magnitude of yuan\u2019s move and the size of China-bound exports relative to GDP. Among G-10 currencies, only the Swiss franc is managed.<\/p>\n<p>J.P. Morgan global currency strategist John Normand expects a return to gradual yuan appreciation in the middle of 2010, with a 5% cumulative move by the end of the year.<\/p>\n<p>Given that China\u2019s exports are 25% higher in value terms than its imports, he said balanced global growth should naturally raise China\u2019s trade surplus. In fact, Mr. Normand suggested that a Chinese revaluation would probably need to be about 20% to have a meaningful impact n global imbalances.<\/p>\n<p>\u201cIf China allows only 5% appreciation this year, which is roughly the pre-Lehman level, the real impact will be trivial.\u201d<\/p>\n<p><a href=\"mailto:jratner@nationalpost.com\">Jonathan Ratner<\/a> <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=409960\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When China allows the yuan to appreciate again, the policy shift will come as no surprise to financial markets. But while the rising currency has an obvious and direct impact on Asian currencies (they should strengthen), a higher yuan may be immaterial for G-10 currency markets, according to a new report from J.P. Morgan. Open [&hellip;]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-446798","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/446798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=446798"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/446798\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=446798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=446798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=446798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}