Tag Archives: Exchange rate

RMB
IMF: Renminbi Now ‘Fairly Valued’
China’s main goals are to give consideration to market supply and the exchange rates of basket currencies, to guide market expectations and to maintain a stable RMB exchange rate -- not to jump on the bandwagon of the “global currency war”. That bodes well for the inclusion of the RMB into the Special Drawing Rights currency basket of the IMF before the end of 2015.
Time to Unpeg the Chinese Renminbi
The Chinese economy is simply too big to remain tied to the once useful monetary anchor of the renminbi–U.S. dollar peg. It is time to let it go. In the short term, it would help deliver a warranted Chinese monetary easing by helping to stabilise the effective exchange rate and to facilitate an orderly unwinding of the Chinese corporate carry trade.
Congress, China, and Currency Manipulation
“Currency manipulation,” or unfair undervaluation, especially on the part of China as seen by the U.S., is a concept that is exceedingly hard to pin down from an economic viewpoint. It is true that China runs a bilateral surplus with the U.S., but as Jeffrey Frankel shows, this has little meaning for the exchange rate and competitiveness of their exports.
Steady on the Renminbi
The renminbi has appreciated sharply over the past several years, exports are sagging, and the risk of deflation is growing. Under these circumstances, many suggest that a reversal in Chinese currency policy to weaken the renminbi is the most logical course. That would be a serious mistake.
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 […]
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