Friday, February 04, 2005
The Pressure's On
It's not just hedge funds... ordinary Chinese are joining in the speculative attack in favor of the Chinese currency.
Like most people in China, Allen Huang will ring in the Lunar New Year next week by visiting with relatives, handing out red envelopes of money and indulging in a weeklong festival of foods. He'll also take part in what's become another tradition among Taiwanese here: loading up on mainland Chinese currency.
Huang plans to change $6,300 of Taiwan's money into Chinese yuan, 10 times more than he usually does every month.
"Many of my friends are doing the same thing," the 32-year-old business development manager said. The reason? "The yuan will be going up."
Although the government in Beijing says it has no immediate plans to let its currency rise in value, speculation is running high among investors and economists that such a move could happen this year.