Tuesday, May 31, 2005

Buying oil

The Prudent Investor - seeing too many bubbles: China may use FX reserves to buy oil - plans SPR
Mundell said that China should ignore outside pressure and keep the Yuan exchange rate stable at a high-profile conference attended by several Nobel laureates in Beijing. If the Chinese currency were to be revalued, overseas direct investment will decrease and lead to more unemployment, affecting even the rest of East Asia, he said.