Tuesday, November 23, 2004
The US Dollar, Asians, and Stephen Roach
Tokyo stepped up its rhetoric about the possibility of imminent foreign currency intervention as the yen hovered close to a four-and-a-half year high against the dollar, threatening the competitiveness of Japan's exporters.
“China's custom is that we never blame others for our own problem,” said the senior central bank official. “For the past 26 years, we never put pressure or problems on to the world. The US has the reverse attitude, whenever they have a problem, they blame others.”
Mr Li insisted an appreciation of the Chinese currency would not solve the US's structural problems and that although China was “gradually” moving towards greater exchange rate flexibility, it would not do so under heavy external pressure.
Stephen Roach of Morgan Stanley much more bearish in private than in public according to Brent Arends of Boston Herald