I heard it claimed on CNN that the recent $2 billion intervention in the forex market by the US and Japan was in response to pressure from China, in particular a threat to devalue as the renmimbi is pegged to the $. BTW, this was the first intervention by the US in the forex market since 1995 (have that from inside Fed sources). Barkley Rosser On Fri, 19 Jun 1998 14:46:04 -0400 Doug Henwood <dhenwood at panix.com> wrote:
> Rakesh Bhandari wrote:
>
> >Aren't the Chinese threatening devaluation in order to get into the WTO?
>
> That's not the way to win friends or influence people. I think the Chinese
> are threatening devaluation because exports are slipping, profits are
> slipping, and growth is slipping, and devaluation looks like a mighty
> tempting option, if you can ignore the consequences.
>
> Doug
>
>
>
-- Rosser Jr, John Barkley rosserjb at jmu.edu