Business Intelligence

China's Exchange Rate Impasse And The Weak U.S. Dollar

Download Now Free registration required

Executive Summary

Since 2004, China has been backed into a situation where the renminbi is expected to go ever higher against the dollar, and this one-way bet has led to a loss of domestic monetary control. Combined with a more general flight from the U.S. dollar, the resulting monetary explosion in China contributes to the worldwide increase in primary commodity prices - with excess liquidity reminiscent of the global inflation generated by the weak dollar in the 1970s.

  • Format: PDF
  • Size: 240.1 KB