Here is a quick summary of Francesco Sisci’s take of what the G8 want with China’s currency RMB:
- They want RMB to rapidly appreciate in order to slow down the inflow of cheap Chinese exports.
- But they want to avoid a global inflation due to consequently more expensive Chinese exports.
- And they don’t want China to gobble up more oil and raw material imports with a stronger RMB either.
Do you get reminded of the saying? “Be careful what you wish for; you just might get it.”