KONTAN.CO.ID - SHANGHAI. Long-term appreciation in the yuan could have a large negative impact on China's economy even if there was no substantial effect on the country's exports in the short-term, a former senior official at China's foreign exchange regulator warned. One-way bets on a rising yuan could hit smaller exporters, causing them to leave the market and result in the loss of jobs for many people, Guan Tao, global chief economist at BOC International, wrote in an opinion piece for financial news outlet Yicai. "If there are no jobs, people will not have an income and there is no way to expand domestic demand," said Guan, who is the former head of the Balance of Payments department at the State Administration of Foreign Exchange (SAFE).
Long-term yuan appreciation could hurt China employment -former SAFE official
KONTAN.CO.ID - SHANGHAI. Long-term appreciation in the yuan could have a large negative impact on China's economy even if there was no substantial effect on the country's exports in the short-term, a former senior official at China's foreign exchange regulator warned. One-way bets on a rising yuan could hit smaller exporters, causing them to leave the market and result in the loss of jobs for many people, Guan Tao, global chief economist at BOC International, wrote in an opinion piece for financial news outlet Yicai. "If there are no jobs, people will not have an income and there is no way to expand domestic demand," said Guan, who is the former head of the Balance of Payments department at the State Administration of Foreign Exchange (SAFE).