Chinese Yuan falls against the dollar

[notrevorich]

It's now cheaper to travel in China because of the weakening Yuan

see www.marketwatch.com/news/China

My wife's relatives have lots of US dollars because they sell some products and get US dollars back .

The economy has been severely weakened and is much worse than reported.

There is a lot of unemployment right now in China-

[Guest Tony n Terrific]

My wife has told me that there has been some layoffs in Nanning the past month. She has also heard the Pearl Valley area has been very hard hit by layoffs of workers there in Guangdong Province.

The US government finally admitted yesterday that figure do lie. They have admitted that we have been in a recession since December of 2007. Duh! We need a PHD in economics to tell us this. Look at how we have been purchasing our goods, especially capital goods ie. cars, homes and major appliances. The major retailers have thrown a big dance but no one has showed up.

 

The yuan vs the Dollar stood at:

 

Currency Conversion Results

Symbol U.S. Dollar Exchange

Rate Chinese Yuan Bid Ask

USDCNY=X 1 Dec 2 6.8838 6.8838 6.8838 6.8888

 

http://finance.yahoo.com/currency/convert?...;amt=1&t=5y

Edited December 2, 2008 by Tony n Terrific (see edit history)

[Stepbrow]

I asked my wife how the economy is doing in Shenyang. She said it is OK. Only a little down and no significant decline in employment. She said the problems are mostly in Southern China right now.

[Randy W]

Dug up an old thread to go with this for a little perspective

 

Yesterday, from the Wall Street Journal

 

Why the Yuan’s Decline Matters

That a central bank would do this on purpose has caught some off-guard, especially since the yuan was long seen by investors as a currency that was only going up.

 

Why does this matter now? Why are they doing it?

 

Currently, the yuan trades within a tight range set by the central bank every day. But, short-term traders and increasing demand is almost constantly pushing the currency higher within that range. By denting the currency’s value on purpose, the central bank is trying to spook away these traders who will now have to worry about the possibility China does this again.

 

 

 

[Thomas Promise]

The yuan today is at 6.135 to $1 USD. Last month it was pegged at 6.05 to 1.

[tsap seui]

The yuan today is at 6.135 to $1 USD. Last month it was pegged at 6.05 to 1.

Good GOOD. Positive movement for a change...LOL

 

tsap seui

[Thomas Promise]

Here is some info on the yuan and possible reasons the dollar is climbing.

 

http://money.cnn.com/2014/02/26/investing/yuan-rmb-china/index.html

[Randy W]

. . . and now at 6.14361

 

China’s Currency Is No Longer a One-Way Bet

 

So far this year, the renminbi has reversed course, weakening 1.6 percent against the dollar. And on Saturday, the central bank, the People’s Bank of China, said that beginning on Monday, it would allow the currency to climb or fall as much as 2 percent per day against the dollar, compared with 1 percent previously.Widening the trading band “will further drive away speculators betting on a one-way appreciation of the Chinese yuan, thanks to the possible bigger and more frequent exchange rate fluctuations,”

 

. . .

 

Freeing up interest rates, internationalizing the currency and modernizing the financial system are all on the agenda. On Thursday, China’s premier, Li Keqiang, said the government’s top priority for the year was to push ahead with financial overhauls.

 

[Thomas Promise]

China's house of cards is about to go poof. They can't build anymore ghost cities with the false prosperity make work projects are coming to an end. The International blood sucking tics are saying pay me.

[Randy W]

China's house of cards is about to go poof. They can't build anymore ghost cities with the false prosperity make work projects are coming to an end. The International blood sucking tics are saying pay me.

 

 

They have increased their urban population from 20 to 50% of the total population by 2010 - a mass migration of around 400 million people - with plans for a similar ongoing migration.

 

The "International blood sucking tics" saying "pay me"??!? Three guesses who that would be, as long as all three of them are "China".

[Randy W]

What comes after a more flexible yuan?

"The recent depreciations guided by the central bank have tested the resilience in the market, and in a sense prepared investors for the band widening," said Ting Lu, an economist with Bank of America Merrill Lynch.

 

The central bank said in the announcement that two-way yuan fluctuation will become the norm.

 

"The announcement strengthens its signal that the one-way bet on a gaining yuan is over," Lu said.

 

In the second half of last year, a significant rise in domestic interest rates coupled with one-way growth of the yuan attracted a large inflow of hot money.

 

. . .

 

A more volatile yuan-dollar exchange rate without an appreciation trend will deter hot money inflow and perhaps result in some unwinding of previous inflow, Lu predicted.

 

. . .

 

Chinese exporters, who may need time to adapt to a more volatile yuan, will overall benefit from the band widening, which sends a strong signal for the end of one-way appreciation, they said.

 

To dismiss worries over risks of large-scale money outflow, Lu noted that China has a massive four-trillion-dollar foreign exchange reserve and a 20-percent reserve requirement ratio (RRR).

 

. . .

 

"We forecast that the yuan-dollar rate will remain stable in the near term, or experience small appreciations," Zhu (of J.P. Morgan) said.

 

Whether the yuan rises or falls, analysts believe further band widening is highly possible as China has put financial reform on its priority agenda.

 

In addition to discussions about how a more flexible yuan will influence the Chinese economy, Lu advised China to reconsider ways to set the daily central parity rate.

 

 

[Randy W]

 

China's house of cards is about to go poof. They can't build anymore ghost cities with the false prosperity make work projects are coming to an end. The International blood sucking tics are saying pay me.

 

 

They have increased their urban population from 20 to 50% of the total population by 2010 - a mass migration of around 400 million people - with plans for a similar ongoing migration.

 

The "International blood sucking tics" saying "pay me"??!? Three guesses who that would be, as long as all three of them are "China".

 

 

 

More rural Chinese, migrants to enjoy urban living under government plan

 

 

Chinese Premier Li Keqiang announced a bold plan on Wednesday to turn more rural people into city dwellers and improve their quality of life.

 

Urbanization is the sure route to modernization and an important basis for integrating the urban and rural structures, Li said in a government work report delivered at the opening of the annual session of the National People's Congress.

 

China will grant urban residency to around 100 million rural people who have moved to cities, rebuild rundown city areas and villages inside cities that are home to 100 million people, and guide the urbanization of around 100 million rural residents of the central and western regions in cities there, Li said.

 

The report did not specify a timeframe for the targets.

 

Nearly half of China's population of 1.3 billion people live rurally. China hopes to increase urbanization to boost consumer spending and ensure sustainable economic growth.