In
his article in the 15th/16th August edition of the
Weekend Australian Alan Kohler suggests there are two ways in which the
unexpected devaluation of the yuan could effect Australia.
First,
he says, the devaluation suggests the Chinese economy could be worse than
thought and secondly, it could lead to more capital flowing from China into the
purchase of Australian real estate.
In
the same edition of the Weekend Australian, Sterling Largin, a global investor,
suggest that the Chinese may be admitted to the International Monastery Fund
(IMF) and their currency may be added to the “Special Drawing Rights” basket of
currencies designed as a reserve for IMF members.
He
suggests that if the Chinese currency does receive this status, the Australian
Dollar will increase in value against the $US.
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