Credit conditions overall, which dragged our economy into a deep recession in 2007, no longer pose an obstacle to growth. [Corporations are raising money in capital markets] and have built up record cash reserves, which will eventually be reinvested and fuel growth.
—Tim Geithner, testimony to the Congressional Oversight Panel: via Bloomberg
Long-term, the trend will be for the yuan to appreciate, but what we saw in the markets today is that it’s not simply a case of one-way moves. The market will have to learn to get used to the fact that Beijing has its own timeline to work to and not anyone else’s.
—Rob Reilly, Société Générale in Hong Kong, remarking in the context in the surprising decline in the value of the RMB in yesterday’s trading, following China’s stated relaxation of the dollar-peg: via NYTimes
The underlying message they are trying to convey is that any moves will be very gradual. They are saying to the markets: don’t get too excited, don’t get ahead of yourselves