*State TV advises Chinese to dump their dollars
kangarooistan
* Friday November 16 2007
BEIJING, Nov 16 (Reuters) - Chinese lunchtime television on Friday
gave ordinary people a basic tip on how to play the currency markets:
sell the dollar!
A state news programme, quoting unnamed "wealth management experts",
told residents with dollar accounts on the mainland to convert their
holdings into yuan or a range of other foreign currencies, including
the pound and the euro.
The prospect of ordinary Chinese ditching the dollar should be less
alarming than reports that have roiled global markets of Beijing
diversifying its official foreign exchange reserves.
Whereas China's official reserves of more than $1.4 trillion are the
world's biggest, private foreign currency deposits in China are a
fraction that size: $162.1 billion at the end of October, according to
People's Bank of China. The central bank did not give a currency
breakdown of these deposits.
The state news programme, which did not quote any government official,
said people were getting squeezed because the pace of yuan
appreciation against the dollar was greater than the interest rate
earned domestically on dollar accounts.
Analysts expect the yuan to rise anywhere from 5 to 7 percent annually
against the dollar, while domestic dollar accounts earn depositors
just 3 percent a year.
The programme proposed three solutions.
"Selling dollar for yuan as soon as possible may be a safe approach,"
the news programme said, adding the yuan could then be used to invest
in domestic mutual funds.
"Secondly, you can change the dollar into strengthening currencies,"
it continued. "Currently, the U.S. dollar is falling against the euro,
the British pound, the Australian dollar and the Canadian dollar, and
you can change the dollar into these currencies for deposits."
The third recommended strategy was to invest the dollars abroad, in
search of higher yields, by buying into Qualified Domestic
Institutional Investor (QDII) products offered by Chinese banks and
fund managers. (Reporting by Zhou Xin, Editing by Simon Rabinovitch)
* Print
SKD
wrote:
> State TV advises Chinese to dump their dollars
>
A slow down in American consumption will be the devastating blow for
Chinese whirlwind economy. Chinese recession will ofcourse stuff us up
here. For 11 years, we have done everything that is counter intuitive
to protect against a financial catastrophe. Two worst things anyone
could have done - accumulate debt and then dumb down the workforce -
we done both! American and Europeans only got debt, but their
educational systems are still world class. Indians and Chinese have
vastly improved their educational systems. Only Howard's battlers can
be relied upon to deliver the double whammy. So let us have some more
of what we been having before, vote lib.
Qahir Al-Ashrar
wrote:
USA dollar sinking against other currencies
Mark Latham - the last of the true believers
Are you some kind of idiot? No wait you're a muzzie aren't you? LOL!
--
The Labor Party is corrupt beyond redemption.
Midex
Editing by Simon Rabinovitch?
An american irish jew? Zionist?
Qahir Al-Ashrar
USA dollar sinking against other currencies,
Qahir Al-Ashrar
USA dollar sinking against other currencies, now it is not worth the
paper its printed on
Qahir Al-Ashrar
USA dollar sinking against other currencies, now it is not worth the
paper its printed on
Qahir Al-Ashrar
US going down taking Israel with them
Little Johnny Howard
> State TV advises Malcum to pay
>
> * Friday November 16 2007
Yes, you'd better, Malcum.