On Tuesday, John Authers of the Financial Times reported that since July 2008, when Chinese exporters were in severe distress, the renminbi has been pegged tightly against the dollar. Given the dollar’s extreme gyrations against other currencies in that time, this can only have been done with an active Chinese decision to tie itself to the dollar. Last month,  a report by the Peterson Institute for International Economics, a Washington-based think tank, said the majority of the 29 currencies it studied need to appreciate against the dollar, with a large rise especially needed by the Chinese currency. Imbalances of Asian surpluses and large American current account deficits, were viewed as having contributed to the credit bubble earlier this decade. However, Markus Jaeger, economist at Deutsche Bank Research says many of the emerging markets  (EM) that had accumulated large FX holdings prior to the crisis will maintain policies geared towards reserve accumulation, whether or not this is desirable from a domestic growth and global adjustment point of view. He says the risk of an EM crisis seems to be receding fast.