economy - SAFE still strong on Renminbi

An estimated US$ 50 billion in Renminbi flooded last year the Chinese economy, as speculators expected the Renminbi to revalue. That did not happen and China's financial authorities, as the State Administration for Foreign Exchange (SAFE) continu to repreat that a full scale revaluation is not on the agenda.
SAFE does allow Chinese companies to hold larger deposits to aleviate some of the presure. "Letting Chinese companies retain more of their hard currency earnings from the first quarter of this year should reduce pressures on the renminbi money supply. Currently the central bank buys all but a small portion of hard currency earned by exporters and repays them in renminbi," writes the Financial Times today.