New York, NY (PressExposure) September 20, 2010 -- “EurasiaTrade” believes that US rhetoric aimed at increasing pressure on China to do more to address the advantage the undervalued yuan has over other currencies could do more harm than good. The firm told delegates at a symposium in Osaka that China’s decision to break the renminbi’s peg to the US dollar earlier this year was a clear indication that it was prepared to play its part in the global economic recovery.

One “EurasiaTrade” analyst said although China may very well be covertly suppressing the value of the renminbi but this was no different from what the US is doing in terms of its ultra-loose monetary policy and quantitative easing. He added that it was unlikely that the US trade deficit with China or its unemployment problems would be resolved by the yuan’s appreciation against the dollar.

China could become more insular and scale down the amount of US debt it holds as part of its foreign currency reserves which could, in turn, lead to higher interest rates at a time the US can least afford them.

Clients of “EurasiaTrade” have been told that the issue is far from resolution and that currencies will almost certainly suffer before one arrives. “Investors need to preserve their wealth by acquiring hard assets because governments will not hesitate to sacrifice their currencies in order to save their economies”, said one “EurasiaTrade” analyst.

About Press Headline

Press Headline
Barclay Tower,
10 Barclay Street,
New York, NY,
10007
USA
877 948 4789
http://www.eurasiatrade.com

Press Release Source: http://PressExposure.com/PR/Press_Headline.html