An independent monetary policy requires a flexible exchange rate, not a revaluation.

Yes, further revaluation of the exchange rate is needed, but this can play only a secondary role.

Under these circumstances, revaluation of the exchange rate will not have a severe impact on an economy s development.

The treasury information systems would address automation of bank reconciliations, cash forecasting, foreign exchange revaluation and cash and investment accounting.

Revaluation would accelerate this trend.

The 415,683 exchange difference results primarily from the revaluation of the United States dollar cash and term deposits held by the special account for programme support costs.

Revaluation of the Chinese yuan would also help.

(iv) Gain loss on exchange arises from transactions conducted in currencies other than euros, for the general and other Headquarters funds and the revaluation of assets and liabilities held in local currencies.

Moreover, global deleveraging is asymmetric, with Latin American economies growing fast and advanced markets lagging all of which may call for a real exchange rate correction and thus justify revaluation of the region s major currencies.

On the surface, at least, the mini revaluation hardly seems to have compromised China s ability to bend exchange markets to its will. Foreign experts had warned that a small Yuan appreciation might be worse than none.

But it seems that both revaluation and reform will take time.

(v) Gain loss on exchange arises from transactions conducted in currencies other than dollars (i.e. for the dollar based extrabudgetary technical cooperation activities in annex I, dollar statements) and the revaluation of assets and liabilities held in non dollar currencies.

Whether they stand to gain or lose from a renminbi revaluation, however, is hotly contested.

Such a revaluation would also discourage exports and encourage imports, thereby reducing China s chronic trade surplus.

Japanese intervention cannot explain the revaluation of the euro against the dollar and many other currencies.

It undertook a small revaluation in 1969 and then let its currency float in May 1971.

Gains arising from the revaluation of non euro cash and bank amounts are treated as realized

China, however, refused to accept the blame and declined repeated US demands to undertake a large revaluation.

But would a revaluation of the renminbi solve America s problems? Recent evidence suggests that it would not.

The following analysis is presented at 2006 2007 costs, i.e. including the element of revaluation and recosting.

Of this amount, 386,000 is attributable to the revaluation of the outstanding loan from the United Nations.

However, unlike Japan, China will not accede to calls for a sharp one off revaluation of the renminbi.

China interprets quantitative easing as a plot to devalue the dollar and force a revaluation of the renminbi.

Moreover, capital inflows increased significantly, owing to real investment opportunities in the high growth economy and the expectation of renminbi revaluation.

This represents an increase over the estimated level applied for the biennium 2004 2005 ( 143,365,453 after revaluation at US 1 0.8103).

When Congress pressed China for a large currency revaluation in 2004 2005, China s current account surplus was rising at an accelerating pace.

Other countries, like Norway and Switzerland, are running current account surpluses that exceed 10 of their GDP, but are resisting currency revaluation.

They would have preferred a sharp revaluation of perhaps 20 in order to make a noticeable dent in the US unemployment rate.

Chinese authorities certainly seem to have that interpretation of the roots of Japan s malaise in mind as they seek to avoid rapid revaluation.

The first round of Yuan revaluation won t be over until the currency is up against the dollar by at least 10 , and probably more.

And what of the booming Middle Kingdom? In Brussels the other day, Premier Wen Jiabao scolded European leaders for pressing for the renminbi s revaluation.

Debates rage over the bilateral trade balance and revaluation of the renminbi, the status of Taiwan and Tibet, human rights violations, and intellectual property theft.

But, even with China s efforts to loosen the renminbi dollar linkage, it is arguable whether revaluation could save American jobs or improve the US trade balance.

Foreign exchange brokerage and activities relating to the foreign exchange market

Unlike Japan, which was pressured by the West into a large yen revaluation in 1985 (the Plaza Accord ), the Chinese have opted to move gradually and deliberately.

Broadly speaking, capital inflows led to real revaluation and a lower domestic savings rate relative to investment in the southern countries, resulting in structural current account deficits.

Information exchange

Exchange of information

Exchange Rate Disorder

Currency exchange rate

Currency exchange rate

Information exchange provisions

Exchange rate fluctuation

(f) Exchange rate

Exchange of currencies