They have to accumulate dollars to keep the yuan down relative to the dollar. But since China has moved to peg the yuan to a market basket of currencies, instead of just the dollar, it's logical for them move their foreign exchange holdings to the same basket.
More Quotes from David Wyss:
Consumer spending may slow down a bit more than thought. But, it won't drive us into a recession - that would probably take oil going well over 100 a barrel.David Wyss
We had expected to see a bigger rebound. On the other hand, some of the pain is lifted by the fact that they did revise up both November and December, so things are still looking pretty good.
David Wyss
I think the hurricanes had less impact than we thought they were going to. They had a negative impact, but people were able to shift things around, and critical services came back quicker than expected.
David Wyss
To me the point for the administration in this pick is getting this over with quickly.
David Wyss
The Fed doesn't like to switch policy very quickly. Unless something goes wrong, I think they are going to stop (after the March move) and hold rates there for an extended period.
David Wyss
There is a risk that energy could break out into a bigger inflation problem. We have gotten through Katrina and oil prices have backed off a bit, but there is a risk that if we have a harsh winter, energy prices will rise again.
David Wyss
Readers Who Like This Quotation Also Like:
Modernity is a qualitative, not a chronological, category.Theodor Adorno
I know right a way there's a person that's very insecure; that he's trying to out do me. And, ah, like I was saying before, if you give one-hundred percent of your best, and you may have fault, but there is nothing you can do, because you gave one-hundred percent.
Lou Ferrigno
To be champion requires more than simply being a strong player; one has to be a strong human being as well.
Anatoly Karpov