The theme of recent discussions has been whether China is deliberately keeping its currency, the renminbi, undervalued in order to keep a trade surplus, despite continuing US pressure on China to allow the currency to appreciate. Chinese premier Wen Jiabao has rejected such claims.
In Europe we have secretly been hoping for the end of US dollar dominance for years, said Michala Marcussen, London-based head of global economic research at Societe Generale corporate and investment banking, at a recent media briefing in Hong Kong. Is it really the end of US dollar dominance I would say no, but it is the beginning of the end of a long story.
The liquidity problems...
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