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 Yuan of China
 
 2/2/2007 10:17:26 AM
User is offlineNelson
4 posts


Yuan of China

Since the entry of China to the WTO, it has been given many advantages by the global economic platform. The dollar has been falling steadily after 2001, accompanying by the rising of the Euro. The U.S. claims the state controlled Chinese Yuan exchange rate gives unfair advantage to the Chinese exports. China has been asked to do more to free flow its Yuan amid protests by the U.S. and Japanese government. Hence it has been one of the major focus in the global foreign exchange market. The Chinese Yuan and U.S. dollar exchange rate is roughly at 8.2:1. In the next 5 years Chinese may love their own currency rather than any other.

 2/2/2007 11:03:32 AM
User is offlinejavon
6 posts


Re: Yuan of China
 Chinese currency to spread in the stock market sounds impossible. China is still in the economic boom and appreciate its currency will substantially have negative impact on its course. The Chinese government will not yield on this issue. If there's is an appreciation take place in the short run, it will be in the 10s of points. Didn't mention that China still largely buying the U.S. bond in order to finances the U.S. deficit. Retail traders to may never take advantage of the appreciation process.
 2/2/2007 11:34:01 AM
User is offlinekody
6 posts


Re: Yuan of China
I think it's still bit too early to speculate on the appreciation of the Chinese currency. China's economy is growing at 9% annual pace. It temporarily examped export tax on  textile products amid Europe and U.S. rise of Chinese textile exports. The hard response clearly showed the government has no intension to revalue Yuan. Forget about what Snow said about 15-30%. It's not going to happen.
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