Beijing pays steep price for its foreign-currency hoard

Article Abstract:

China's huge foreign currency reserves at $105 billion and big gold reserves, which both grew by 43% in 1996, may be a manifestation of economic progress. However, economists argue that the large scale reserve reflects the country's failure to accomplish needed economic reforms. China's imports in 1996 increased by only 4% even though the economy soared by 9.7%, mainly due to administrative restrictions to spend its dollars. However, the high reserves may not necessarily be detrimental for China's economy if they are to help Chinese leaders in pursuing trade liberalization, full currency convertibility and state-owned business restructuring.

Currency in Circulation, Foreign exchange reserves

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Pledge on yuan repeated; central banker sends warning to creditors

Article Abstract:

The People's Bank of China's top executive Dai Xianglong gave the currency markets a strong assurance that there are no plans to devaluate the yuan in 1999. This came after the Asian markets plummeted due to rumors circulating about the devaluation of the yuan. Dai stated during a news conference that what happened to the Brazilian real would not happen to the yuan and that devaluation would only transpire in the event of a great imbalance in the balance of payments. Dai expressed his confidence in the Chinese economy which is touted as the fastest-growing major economy in the world.

China, Government regulation, Currency Stabilization Programs, Prices and rates, Central banks, Currency stabilization, Yuan (China), People's Bank of China, Dai Xianglong

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Hopes for pushing the envelope: Daley's first visit to Beijing will likely yield deals

Article Abstract:

US Commerce Secretary William M. Daley's visit to China hopes to establish economic ties between the two nations via business contracts in the energy, aircraft, environment and electronics sector. Daley's agenda include pending projects on the reconstruction and modernization of old airports and the power plant extension at Shandong province. The Chinese government has also expressed its desire to purchase Boeing aircrafts. US corporations such as Raytheon Co. and General Electric Co. are vying againts European companies for the approval of these deals.

Intnl Economic Policy, United States, International economic relations, Chinese foreign relations, United States foreign relations, Daley, William M.

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