China to pursue strong currency policy?

[Free Trade is managed by the invisible hand.]

http://www.calculatedriskblog.com/2010/06/china-statement-to-proceed-with.html

From Bloomberg: China Yuan Pledge Suggests Peg to Dollar May Go

Here are some excerpts from the statement (via WSJ):

In view of the recent economic situation and financial market developments at home and abroad, and the balance of payments (BOP) situation in China, the People´s Bank of China has decided to proceed further with reform of the RMB exchange rate regime and to enhance the RMB exchange rate flexibility.
...
The global economy is gradually recovering. The recovery and upturn of the Chinese economy has become more solid with the enhanced economic stability. It is desirable to proceed further with reform of the RMB exchange rate regime and increase the RMB exchange rate flexibility.
I'll believe it when I see it ...

[phk]

Strong currency policy?

Article reads more like free floating policy.

[Free Trade is managed by the invisible hand.]

Strong currency policy?

Article reads more like free floating policy.

Basically this means that China will let their dollar appreciate?

[phk]

Strong currency policy?

Article reads more like free floating policy.

Basically this means that China will let their dollar appreciate?

China will let the dollar do whatever the dollar is supposed to do if the article is correct.

It means they want to move to the Yuan's actual valuation as it would be in the Forex markets.

[phk]

Fun fact: China now exports every six hours as much as it did in the whole of 1978.