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bish
Joined: 26 Feb 2008
Posts: 30
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 Posted: Mon Dec 15, 2008 9:08 am Post subject: Tha Value of the RMB |
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Since I was last in China the value of the British pound has plummeted, making coming back to China more attractrive to me (as I have small UK bills to pay each month). Althought the wages in China are not great if they and the value of the Yen stay as they are then coming back is fine with me as I am sure I can find extra work too (I always have done in the past).
I am not an economist by any stretch of the imagination so I am wondering if anyone has any ideas as to if the value of the RMB is likely to remain the same for the forseeable future, or crash as the Won has done in Korea? |
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wulfrun
Joined: 12 May 2008
Posts: 167
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| Posted: Mon Dec 15, 2008 8:31 pm Post subject: |
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| i'd be interested in answers to this too - the 10RMB/�1 exchange rate is attractive. apparently the chinese economy is going to take a significant knock in 2009; don't know how exactly this bodes for the CNY/GBP exchange rate (as i'm not an economist either...). |
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william wallace
Joined: 14 May 2003
Posts: 2869
Location: in between
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| Posted: Tue Dec 16, 2008 2:59 am Post subject: |
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| Interesting, and the RMB is quite high against the US and Canadian dollar as well. |
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Ms Bean
Joined: 11 Oct 2008
Posts: 110
Location: Wilmington
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| Posted: Tue Dec 16, 2008 4:02 am Post subject: |
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How about this link?
http://www.xe.com/ucc/
Presently:
1.00 GBP= 10.4857 CNY
1.00 USD = 6.84800 CNY |
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Mister Al
Joined: 28 Jun 2004
Posts: 840
Location: In there
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| Posted: Tue Dec 16, 2008 6:54 am Post subject: |
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| I'm no economist either but as I understand it the RMB is does not float in the money markets in the same way the USD/GBP/Euro/JY etc does, so it's more to do with the strength/weakness of the GPB rather than the value of the RMB. The Chinese government will decide whether to devalue the RMB or not. I'm open to corrections on all this though. |
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wulfrun
Joined: 12 May 2008
Posts: 167
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| Posted: Tue Dec 16, 2008 8:26 am Post subject: |
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| Ms Bean wrote: |
How about this link?
http://www.xe.com/ucc/
Presently:
1.00 GBP= 10.4857 CNY
1.00 USD = 6.84800 CNY |
and how about the next two years, beany? |
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randyj
Joined: 19 Jan 2003
Posts: 460
Location: Nanjing, Jiangsu, China
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| Posted: Tue Dec 16, 2008 4:00 pm Post subject: |
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| As far as the RMB is concerned, I think the Chinese government decides in what narrow range their currency is allowed to float. I mean narrow. In the current economic environment, I do not believe they are interested in allowing the RMB to become more dear. Henry Paulson did convince them to allow a gradual depreciation against the US dollar during the last two years, but that trend is not going to continue. |
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Ms Bean
Joined: 11 Oct 2008
Posts: 110
Location: Wilmington
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| Posted: Tue Dec 16, 2008 11:43 pm Post subject: |
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| wulfrun wrote: |
| Ms Bean wrote: |
How about this link?
http://www.xe.com/ucc/
Presently:
1.00 GBP= 10.4857 CNY
1.00 USD = 6.84800 CNY |
and how about the next two years, beany? |
Thank you for asking.
Take a look at market trends, eighty years of world economic history, and the fact that China wants to divest itself of the falling dollar. China is doing its best to spend its USD by buying American products and real estate, much like Japan and the OPEC did back in the 1970's.
Also take into account that America has been haranguing the PRC to stop tying the RMB to the value of the USD for many years. Until recently, the PRC had no real incentive to raise its value on the money market. It wanted for its currency (and its products) to be competitive. With the USD in a dismal decline, the PRC has turned to investing in the Euro which has remained much more stable than the USD in recent years. Most international Chinese companies trade in USD, but that will change if America continues its nosedive.
The GBP? I am unsure how vested the Chinese are in that currency, how much Great Britain will allow, or how long their long-term interest in that currency will last. For sure, the GBP is a strong currency, and the British economy is presently very robust (and has been for several years) compared to the American economy. Unfortunately, the British economy is nowhere near the size of America's. (Its interests are broad, but not massive in all interests). In addition, the British have a good grip on their own economic machine, I think. I can't really say with much certainty what Great Britain will do to keep the tide flowing in its favor. Anyone familiar with Webster Tarpley's take on America's stock market crash of 1929 will know how adept the British have been in keeping its own head above water.
Caveat: I am not an economist. I merely read widely, and watch the world around me. What I have expressed is an informed opinion. Results may vary. Don't try this at home. Results may vary, etc., etc., etc.. |
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wulfrun
Joined: 12 May 2008
Posts: 167
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| Posted: Tue Dec 16, 2008 11:49 pm Post subject: |
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| Ms Bean wrote: |
| For sure, the GBP is a strong currency, and the British economy is presently very robust (and has been for several years) compared to the American economy. |
thanks for reply. not sure about the british economy being called 'presently very robust', compared to anybody.  |
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lpm782
Joined: 16 Dec 2008
Posts: 30
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