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Posted On: 04/12/2013 5:30:05 AM
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Posted By: testuser
Analysis: Yuan speculators muddle China's exports, complicating reform

File photo of a bank clerk counting Chinese yuan banknotes at a branch of the Industrial and Commercial Bank of China in Huaibei By Pete Sweeney SHANGHAI (Reuters) - Companies gambling on yuan appreciation are distorting Chinese trade statistics, creating a monetary policy headache for Beijing officials and complicating government plans to liberalize the capital account. Speculative inflows disguised as trade are causing concern because they aggravate a recent trend - the sudden resurgence of hot money inflows. Some $125 billion poured into China in January and February after nine consecutive months of outflows, exclusive of hot money masquerading as trade. ...



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