hi~ there.... i dont think Chinese govornment is trying to push the USD down. Coz if the USD down too much, the appreciate Chinese yuan will has a negtive impact on export and also blow the "buble" even bigger in China... Since FED declines the interest rate, this will impact the space that China increase its interest rate which lets Bank of China in a awkward situation because China wantsto use tighten monetry policy since the increased inflation expectation and over heated economy. The slowing of US economy is mainly caused by sub-prime loans... not because of selling USD.
Last edited by chensi17; 11-08-2007 at 05:49 PM.
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