You are here
Peter Brimelow: Gold superbulls remain cautious
Report: China Banks to Get Dollar Dealings
By The Associated Press
Monday, November 29, 2004
http://www.forbes.com/business/healthcare/feeds/ap/2004/11/29/ap167775
8.html
Regulators may let China's four biggest state banks
become market makers in U.S. dollar trading, paving
the way for less currency intervention by the central
bank, a state-run newspaper reported Monday.
A market maker agrees to act as either a buyer or
seller in a financial transaction when no other party
can be found. The People's Bank of China, the central
bank, is now China's key market maker in U.S. dollar
trading due to tight restrictions on foreign exchange
dealings.
Draft measures for expanding the number of market
makers for U.S. dollar trading have been completed,
and the State Administration of Foreign Exchange
-- China's top foreign exchange regulator -- will
decide when to announce them, the China Business
Post reported.
China's four biggest banks -- Industrial & Commercial
Bank of China, Agricultural Bank of China, China
Construction Bank, and Bank of China -- would be
the first market makers to be approved, the report
said, citing unnamed sources.
The report gave no time frame for the proposal's
implementation.
China tightly controls trading in its currency, the
yuan, and sets its value within a narrow band at
about 8.28 yuan per U.S. dollar.
The reported plan to allow more market makers
would not directly affect the yuan's value. But it
is part of a broader series of reforms aimed at
eventually loosening restrictions on currency
trading.
By expanding the number of financial institutions
authorized to handle U.S. dollar trading, regulators
hope to slow the surge in China's foreign exchange
reserves, which are held by the central bank.
That move would be "very welcome," said Xia Bin,
an official in a research department under the State
Council, China's Cabinet.
The plunge in the U.S. dollar's value against many
key currencies has obliged China's central bank
to boost dollar buying to keep the value of the yuan
steady. That, coupled with strong foreign direct
investment and exports, had by late September
boosted foreign exchange reserves to almost
US$515 billion (euro396 billion).
The dollar's fall has prompted mounting speculation
that China might adjust the yuan's value against the
dollar soon. Central bank officials have responded
by saying they have no timetable for foreign
exchange reform.
The yuan will "continue to remain stable at a
basically reasonable and balanced level," the China
Securities Journal cited Li Ruogu, deputy governor
of the People's Bank of China, as saying at a
meeting Sunday of the Asia Pacific Economic
Cooperation countries.
"It's impossible for us to completely stop speculative
forces or behavior, but we don't want to see domestic
or overseas individuals or institutions speculate on
the yuan," the report, published Sunday, quoted Li
as saying.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kuik.com/KH/KH.html
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
Subscription sites:
http://www.lemetropolecafe.com/
http://www.interventionalanalysis.com
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
Centennial Precious Metals
3033 East 1st Ave., Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
http://www.gata.org/creditcard.html
By GoldMoney:
http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled "GATA."
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
