I might be right about the Chinese yuan and their food problem. But guess who supports appreciation in their currency all of a sudden?
China’s yuan traded near a 17-year high after Chinese Premier Wen Jiabao said a stronger currency will benefit the nation’s economy.Commodities just got a little cheaper for some.
While the appreciation will be gradual, strength is beneficial as it curbs inflation, Wen said yesterday in an online interview with citizens. The government has set an annual economic growth target of 7 percent for the five-year period through 2015, compared with 7.5 percent for the preceding five years, Wen said. [More]
[Note also the slower growth targets.]