Yuan Revalued: RMB going up up up!
Previously valued at 8.28:1, open trading recently on the yuan currently values it at 8.11:1, a gain of roughly two percent. Over time, the increasing cost of travel to China will probably hurt tourism, do who-knows-what for the economy:
The State Administration of Foreign Exchange published detailed rules on the trading limits for the yuan, saying that it would be allowed to rise or fall by 1.5 percent per day against foreign currencies other than the dollar.
Led by the United States, government leaders and central bankers from a raft of China’s trading partners welcomed the move, which came after two years of pressure from foreign governments and global markets.
“They’ve put in place a mechanism that provides room for significant movement over time in the currency, and they’ve expressed a commitment to using market forces to let the currency move,” U.S. Treasury Secretary John Snow said.
This entry was posted on Saturday, July 23rd, 2005 at 5:48 pm and is tagged with state administration of foreign exchange, u s treasury, foreign currencies, s trading, treasury secretary, msnbc, john snow, global markets, government leaders, yuan, trading partners, raft, united states government, currency, governments, economy, china, tourism. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback.
Leave a Reply
Please take time to enjoy the archives: October 2008 (1) September 2008 (3) August 2008 (5) July 2008 (5) June 2008 (3) May 2008 (3) April 2008 (1) March 2008 (4) January 2008 (3) December 2007 (1) November 2007 (2) October 2007 (3) September 2007 (1) August 2007 (2) July 2007 (8) June 2007 (4) May 2007 (5) April 2007 (3) March 2007 (3) February 2007 (6) January 2007 (6) December 2006 (7) November 2006 (3) October 2006 (6) September 2006 (2) August 2006 (6) July 2006 (8) June 2006 (6) May 2006 (4) April 2006 (12) March 2006 (4) February 2006 (17) January 2006 (9) December 2005 (5) November 2005 (4) October 2005 (8) September 2005 (1) August 2005 (4) July 2005 (4) June 2005 (4) May 2005 (3) April 2005 (8) March 2005 (11) February 2005 (2) January 2005 (7) December 2004 (10) November 2004 (9)
Fresh, related resources:
- The currency debate re-ignites?
Maintaining the value of the currency continues the unbalance, speeding bup/b the appreciation re-ignites speculative inflows, and even my once-favored response – a one-off brevaluation/b – is now a very risky strategy that could provide the b.../b - Current Events - bYuan/b hits new high against US dollar
The value of the byuan/b went bup/b 240 basis points from Monday’s 7.6085 against the US dollar to open for trade on Tuesday at 7.5845, the highest level since the byuan/b was brevalued/b by 2.1 percent from 8.28 byuan/b in July b.../b - Recreation - bYuan/b likely to be more flexible
consumption and domestic demand, further opening bup/b the domestic market, increasing imports and promoting investment overseas. The central parity rate of the byuan/b, also known as the Renminbi (bRMB/b), stood at 7.5951 byuan/b to one US dollar b.../b - Bank run in Hong Kong
A lot of people have been asking me recently about China’s strategy for the bRMB/b. Should China continue forcing the bRMB up/b, or is it time to change strategy? Given the possibility of slower export sales, might we even see depreciation? b.../b - Our Economy
Is it any wonder why prices at the gas pump have gone bup/b in recent years while goods at Wal-Mart and Target continue to be inexpensive? (To be sure, oil prices are determined by a variety of factors. However, China’s energy needs b.../b