Re: Dump the Dollar, China State TV Tells Viewers

On Fri, 16 Nov 2007 11:45:36 -0800 (PST), david_huang2007@[EMAIL PROTECTED]
>http://www.cnbc.com/id/21829883
>
>Chinese lunchtime television on Friday gave ordinary people a basic
>tip on how to play the currency markets: sell the dollar!
>
>A state news program, quoting unnamed "wealth management experts,"
>told residents with dollar accounts on the mainland to convert their
>holdings into yuan or a range of other foreign currencies, including
>the pound and the euro.
>
>The prospect of ordinary Chinese ditching the dollar should be less
>alarming than re****ts that have roiled global markets of Beijing
>diversifying its official foreign exchange reserves.
>
>________________
>
>Expect higher inflation rate, Americans!


Don't be an idiot on banking matters.  Mainland residents cannot hold
foreign currencies let alone foreign currency accounts.  There are no
private USD accounts to speculate with.

On the same exchange control laws the Yuan is not convertrible.  That
is financial speculators cannot buy and sell the Yuan in the open
market.  They can only buy or sell the Yuan from China's Central Bank
at a fixed exchange rate and for specific purposes such as payment for
a business contract.  Of course there will be quite a few billions
worth of Yuan floating around the world at any one time that is not
under the control of China's Central Bank.  But it is next to
impossible for a non Chinese bank or a financial speculator to amass
these Yuan accounts to speculate  on the Yuan.  The amounts involved
in the informal free market are also now big enough to make a profit
from.