Update 2005: China

China’s leaders get high marks for deft use of macroeconomic tools to cool growth in the last year, and for maintaining the general fiscal health of the economy despite the non-performing loan problem that plagues the banking sector. But a currency revaluation is not in the offing in the near term – at least so long as speculation continues – and any likely change in China’s currency regime will see an end to the yuan’s peg to the ailing dollar in favour of a link to a more diversified basket of currencies rather than a simple revaluation.