Oil Market

This blog is dedicated to discuss the political economy of oil markets with a critical and historical approach. Oil has become a unique commodity in modern capitalism. Its market has been driven by transnational corporations and financial markets speculation. Articles, papers and personal comments on the global oil market framework, its fundamentals, supply and demand, cartels, imperialist policies, and the underlain class struggle issues are being daily gathered.

Thursday, June 30, 2005

Puts & Calls: Would revaluing the yuan destabilize China's economy?

Thanks to China's huge trade surplus and inward foreign investment, the demand for yuan well exceeds the supply in foreign exchange markets. To maintain the yuan peg at 8.28 per dollar, Chinese monetary authorities purchase dollars and has encouraged overinvestment in its export industries and excessive urban development -- creating great stress in international oil markets.

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