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Yuan pushes to record high against greenback. [Copy link] 中文

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Medal of honor

Post time 2013-8-8 04:29:19 |Display all floors
The Chinese Yuan has just reached a record high value against the worlds reserve currency the USD.

"Expectations of yuan depreciation have declined after the government signaled it'll work toward realizing its growth target," chief economist Eliza Liu with CCB International Holdings Ltd. in Hong Kong told the media outlet on Wednesday. "However, the yuan is unlikely to gain significantly going forward on gloomy export prospects and unfavorable capital flows."

The value of the Chinese currency at closing on Wednesday was at its highest rate against the U.S. dollar since the advent of the foreign exchange market in 1994.

The rise and rise of China continues.

Go China!

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Post time 2013-8-8 04:30:25 |Display all floors
This is bad news for Chinese exporters.

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Post time 2013-8-8 04:50:47 |Display all floors
grb Post time: 2013-8-7 12:30
This is bad news for Chinese exporters.

not REALLY 'cause they keep their prices low & maybe they would let their buyer to lock in at certain favorable rate let say for another 6 years (would you take your biz somewhere when nowhere is cheaper than you already there)...you kno how the chinese doin business they dont let you leave the door without buyin   
a man who uses his hands is a laborer. one who uses his hands and his mind is a craftsman. but he who uses his hands, his mind, and his heart, is an artist...

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Post time 2013-8-9 11:55:27 |Display all floors
Not just yuan.....


Yen and Euro too appreciate against US $ recently....main reason , the players are very scared of tapering in bond purchases aka QE.

This is very negative for Japan market but should be ok for US and actually good for China that there is a vote of confidence on yuan.
I've made my living, Mr. Thompson, in large part as a gambler. Some days I make twenty bets, some days I make none. There are weeks, sometimes months, in fact, when I don't make any bet at all because ...

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Post time 2013-8-9 12:44:24 |Display all floors
THEY ARE JUST HURRYING UP THE LOOTING OF THE 3.5 TRILLION CHINESE CURRENCY RESERVE.

The rise in value of the yuan is not due to foreigners valuing the yuan more than ever before.  Far from it.  although the IMF has claimed that the Yuan was overvalued all these years, it predicted in 2012 that the yuan would devalue to 6.7 in around 2017.  What do you call a person who says your products are underpriced, but wll nevertheless naturally drop futher in price?  Either he is an idiot or he is a liar, or both.

The rise the exchange rate of the yuan is propelled by the Chinese central bank paying even more dollars for anybody willing to sell it back the yuans it had printed before.  In 1997, this was an emergency measure to prop up the value of the Yuan against depreciation, when foreign speculators borrowed billions of dollars worth of yuans and were dumping them in the market, making it too expensive for China to import its raw materials, when it was struggling to become a manufacturing powerhouse.  In 2013, this is a ROUTINE DAILY MEASURE by the Chinese Central Bank which serve no useful purpose, except to force ALL manufactured products of China to be OVERPRICED in dollars abroad and in yuans at home, all at the expense of China's own foreign currency savings or reserves.  Opposite in direction to the 1997 economic policies of Deng and Zhu, the current exchange rate policy of the PBOC are designed to crush China's factories, enrich foreign investors when they repatriate their earnings and capital abraod, and importers of foreign goods.  It is a sure recipe to cause China's manufacturing sector that has just been pumped up with liquidity and debt to stave off the 2008 financial meltdown, to become insolvent because it could not sell its products abroad or at home.  In short, when you pump up a balloon, and then clamp down on its safety valve (sales of products), you can only expect one result.  You don't have to be an Einstein to know it will explode.  

If the captains of banking and exchange rate policy believe in IMF's prognostications and advice, which we have shown to be either stupid or dishonest, then they are either incompetent or disloyal to the people they serve.

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Post time 2013-8-9 12:49:15 |Display all floors
abramicus Post time: 2013-8-9 12:44
THEY ARE JUST HURRYING UP THE LOOTING OF THE 3.5 TRILLION CHINESE CURRENCY RESERVE.

The rise in val ...

currency up is a vote of confidence.
I've made my living, Mr. Thompson, in large part as a gambler. Some days I make twenty bets, some days I make none. There are weeks, sometimes months, in fact, when I don't make any bet at all because ...

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Post time 2013-8-10 15:35:39 |Display all floors
Revolutionar Post time: 2013-8-9 12:49
currency up is a vote of confidence.

The problem is this vote of confidence is meaningless when it is you, yourself, casting the vote for yourself, just as China is buying back her yuans with ever more dollars, using her own foreign currency reserve.  This becomes no longer vote of confidence, but a "confidence game" instead, with the mark being the innocent Chinese people whose dollar reserves are being depleted while their central bank uses them to vote for its own currency - to the benefit of foreign countries, especially Japan.

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