Middle East Economic Survey

VOL. XLVIII

No 31

1-August-2005

Chinas Revaluation Reduces Oil Import Costs, Says Société Générale

Chinas Central Bank has taken markets by surprise in announcing a 2% revaluation of the yuan currency, according to Société Générale (SG). The announcement, on 21 July, helped increase crude prices as traders feared the move could reduce the countys crude purchasing power (MEES, 25 July). However, in the Weekly Oils report of 25 July, SG analysts Frédéric Lasserre and...