economy State media add to confusion on Rmb revaluation
At first sight the headline looks no less then sensational. "China may boost RMB next month", writes the Shanghai Daily today. In the past this kind of announcement in state media would have a major impact on the financial markets. The paper suggests that China will revalue its currency next month, something the USA has been asking already for months in a mistaken believe that such a move will be beneficial for the US dollar.
But too many elements in the article do not match. First, it is rather uncommon for the government to announce any revaluation ahead of time. In the morning you wake up, and then it has happened. When you announce such a move ahead of time, it will throw the financial market in an even larger turmoil.
Then, the Shanghai Daily quotes another paper, the China Business Post, that has used this story already last week.
It looks like the censors at the Shanghai Daily are not yet back from their holidays, otherwise this could not have happened. Also more experienced journalists would have known that this is a rumor with very little value. We can continue and read the rest of the media.


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