Tag Archives: Exchange rate

Will the RMB Enter A New Round of Depreciation?
China’s Central Bank is assessing changes in its international monetary policy in the following areas: RMB internationalization, becoming less dependent on U.S. Federal Reserve monetary adjustments, and containing the arbitrage of foreign speculative investment. With a major focus on the dispossession “outstanding funds for foreign investment,” the RMB is expected to experience moderate depreciation or fluctuation.
Two Reasons for Changing the RMB Exchange Rate
After the Renminbi depreciated for five consecutive months, the market has again seen signs of a pick-up. Some analysts believe the unusual change in RMB exchange rate means the RMB has stopped depreciating and begun returning onto the track of appreciation.
Promoting Exchange Rate Reform
The RMB exchange rate should gradually reform with less government interference, writes Yi Xianrong.
The RMB Exchange Rate and Sino-US Ties
In the future, Americans may not worry about the Yuan being undervalued, but will rather worry that a rapidly appreciated Yuan may erode the dollar’s supremacy and thus share the benefits enjoyed by the traditional international reserve currency, writes Ding Yifan.
Prospects for 2013 Chinese Economy: Faster GDP Growth
Thanks to the central government’s stabilization policies, Chinese enterprises have accelerated production to make up the inventory rather than slowing down production to digest the inventory. The macroeconomic operation will continue the rising trend and China’s GDP growth in 2013 may be faster than 2012.
trade port
Trade Surplus Has No Substantive Linkage to Exchange Rate
While avoiding the label of “currency manipulator,” China’s currency, the renminbi, continues to face criticism by the US Treasury Department for being “significantly undervalued.” Now, an analysis of global trade data seeks to end the correlation between trade surplus and currency exchange rates.
Is China Ready for RMB Globalization?
Recently, there has been an increasing call from the global sphere for the Chinese government to faster globalization of the RMB, since stronger economic growth in China can also help pull the rest of the world out of its current financial slump. The next question comes to whether China is ready for the challenge in next five to ten years.
From Economic Reforms to Financial Reforms
Recently, the U.S.-Chinese Strategic & Economic Dialogue (S&ED) was overshadowed by international politics, rapid escalation of challenges in the Eurozone, and debates on the slowdown in Asia. Nonetheless, the Dialogue was surprisingly productive, in light of the magnitude of challenges facing the global economy and Sino-U.S. bilateral relations today.  Most […]
America’s Renminbi Fixation
For too long, the United States has allowed its fixation on the renminbi’s exchange rate to deflect attention from far more important issues in its economic relationship with China. For a growth-starved US, the opportunities for access to China’s markets far outweigh the currency threat.
The Cracks in the BRICS
Despite having existed as an organized institution for several years now, the BRICS nations are still struggling to find a common identity and institutionalized cooperation. The central reason for this lack of cohesion can be attributed to the often conflicting goals of the five nations. Yet the five emerging economies pride themselves on forming the first important non-Western global initiative.
How Shall America Respond to Chinese Yuan as a Global Currency?
Since the collapse of Lehman Brothers and the ensuing tsunami from Wall Street that almost swamped the financial world in 2008, China has been busy signing bilateral currency swap agreements in order to minimize the exposure of holding too many dollars. Such swap agreements allow the two signatory nations to […]
US Trade with China: More Good than Harm by Far
Recently, the Wall Street Journal carried an article entitled, “How Much Harm Chinese Goods Can Do to America?”, relating three American researchers’ assumption that the import of Chinese goods would wreak far more economic havoc on America than imagined. They even queried the validity of the basic international trade theory […]
Yuan Internationalization Represents Opportunity, not Threat, for US
Nobel laureate Robert Mundell once stated that “great powers have great currencies.”  Few geopolitical observers today would deny that China has now achieved great power status. Yet, if the overall size of the Chinese economy, its position as the world’s leading official creditor, its stature as a powerhouse exporter, and […]
Interest and Exchange Rates Reform Is Pressing Priority
The core of internationalization of the Chinese yuan, or renminbi, is liberalization of its capital account, as was revealed in China’s practices over the past year. In other words, liberalization of renminbi’s capital account is a prerequisite for its internationalization, and each step of its internationalization must be conditioned by […]
Exchange Rate and Intellectual Property
Year 2012  is not likely to be very different from the recent past in U.S.-Chinese economic relations. This is in part due to the political situation with China seeing a turnover of its top leaders and President Obama facing a tough re-election campaign. Under the circumstances, it is likely that […]
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