StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

China Revalues Yuan - Assignment Example

Comments (0) Cite this document
Summary
The paper “China Revalues Yuan” looks at China as one of the biggest competitors in the world. It is in the league of beating any country in the world in the quality of products and exports. China is throwing big challenges to all the super powers for the last couple of years…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.3% of users find it useful
China Revalues Yuan
Read TextPreview

Extract of sample "China Revalues Yuan"

Download file to see previous pages The exhibitions held in Guangzhou, Beijing every now and then, attract a lot of participants from the world to buy and sell their products. This has become a platform for Industries to show-case their products. This has taken away the hosting rights from Germany and France, where Industrial Expo used to be held in the past. (ChinaDaily 2009)
According to the leading businessmen in China, it is reported that the appreciation of their currency has surpassed the growth of their business beyond their dreams. Due to the higher valuation of Yuan, the exporters who have been making money on Dollar denomination found to be declining in their profits. At the same time, the exhibitors are afraid that the process may slow down their export due to the valuation. However the associations and the chamber of commerce in China say that this is only a passing phase and in due course of time, it will become normal, as the economy worldwide is improving. (ChinaDaily 2009)
The Chinese government, in order to reduce the gap with the major buyer like the United States of America, revalued its currency against the U.S dollar, to avoid the fixation of the rate of Yuan against the U.S dollar. The stronger Yuan will result in Chinese products being priced higher. By that, the sales in the US will increase sales in the market and thus bring in a greater amount of dollars. There is a fear in the US market that the Chinese products will cost more due to the fixed rate of Yuan. (Isidore, 2005)
The US Senators rather welcome the change of Chinese financial decision though it is not appreciated by the congress. The financial analysts say that the change though small in stature, it is very significant since they have revalued the currency that will pave way for further future valuations. Global Economists feel that it may not cause an immediate impact on the economics of the trade but will open the doors to strengthen the Chinese currency. But, the incident resulted in the US stocks soaring immediately, only to become normal after some time. (Isidore, 2005)
It has been established that the fixed rate of the currency with US $ has widened the trade gap between the two and kept the Chinese made goods cheap buy in the US. The Central Bank of China assured that the exchange rate band would be adjusted when necessary according to market development as well as economic and financial situations. In a survey conducted in the US, it is reported that there will not be much impact on the trade due to the revaluation of the Chinese currency but, there could be market stabilization favoring China in the long run. The US is trying to impose trade sanctions on Chinese imports if the market-based valuation of Yuan is not allowed. (Isidore, 2005)
The major move by the Chinese Government in the currency conversion is backed by the exporters, manufacturers and the suppliers and also the trade bodies /associations in the country. This is a great step forward by them to strengthen the financial and economic stability of the country. The President of China Hu Jintao told US President at a meeting, that in the scene of an outbreak of the International financial crisis, China has maintained a stable Yuan exchange rate despite the difficult economic conditions. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(China Revalues Yuan Assignment Example | Topics and Well Written Essays - 750 words, n.d.)
China Revalues Yuan Assignment Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/sociology/1525423-should-the-chinese-be-allowed-to-continue-to-fix-the-yuan
(China Revalues Yuan Assignment Example | Topics and Well Written Essays - 750 Words)
China Revalues Yuan Assignment Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/sociology/1525423-should-the-chinese-be-allowed-to-continue-to-fix-the-yuan.
“China Revalues Yuan Assignment Example | Topics and Well Written Essays - 750 Words”. https://studentshare.org/sociology/1525423-should-the-chinese-be-allowed-to-continue-to-fix-the-yuan.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF China Revalues Yuan

Chinese Yuan Currency

...?Chinese Yuan Currency I. The video ‘Q China's Banks, Economy, Europe Crisis, U.S. Economy’ considers the nature of the Yuan in terms of the recent Asian circumstances and the world economic crisis. Some of the primary considerations in these regards are the increasing propensity of traders to engage in options and futures trading over equities as the later has experienced tremendous volatility. In terms of investment in Asia there is growing worry about state banks. Still, Andrew Sullivan indicates that China’s domestic economy has experienced strong indications and has attempted to eliminate speculative practices. In addition, there is a great amount of money that is not stored in the banks and remains in the hands of the people... . There...
8 Pages(2000 words)Essay

Revaluation of Yuan

...?Revaluation of Yuan The article, “Why China Is Unwilling to Revalue the Yuan” written by Ian Lamont in The Baseline Scenario in October describes various reasons behind the decision of the communist government of the country not to devalue the Yuan in terms of Dollar. The article mainly focuses on the trade-off between higher growth rate and employment and the increase in export volumes (Lamont). This paper is aimed at providing a critical review of the article. According to the author, since many years, China is facing significant pressure from the foreign countries to devalue its currency or to let it...
3 Pages(750 words)Essay

Chinese Yuan vs. US Dollar

...? Chinese Yuan vs. US Dollar Introduction Deng Xiaoping was a China’s reformist who initiated the country’s economic rice to the modern world of trade in 1980s. He led to the introduction of policies that resulted to opening up China economic relations at a global scale. The use of the Chinese Yuan as the legal tender and its pegging against the US dollar in the exchange markets contributed to the economic rise in the country. The Chinese Yuan is also referred to as the Renminbi that forms the core foundation of trading arrangements between China and the US (Zhang 2004). The use of the two currencies in trade began in 1985 on a bilateral...
8 Pages(2000 words)Essay

Yuan Revaluation: Its Impact on the Economy of China and U.S

...Yuan Revaluation: It's Impact on the Economy of China and U.S. China's currency is generally known as the renminbi (RMB) while the unit of measurement is the Yuan (terminology that parallels "dollar" in the U.S. (USD)). The RMB exchange rate reform is closely related with the appreciation of the said currency. Recently, the appreciation of the renminbi has been accelerating, its expected appreciation having once been enhanced. There are still controversial issues on the floating scope of the RMB and the floating exchange rate flexibility. Through the analysis of the economic impact of the RMB exchange rate reform, it would not be hard to conclude that a...
37 Pages(9250 words)Coursework

Xedit Li Yuan polisy 24 hours services

...the plan got approved. The accomplishment resulted from my innovation and I could successfully utilize my business skills into a social stage .This was counted as substantial because it attributed much towards my confidence to strive in changing scenarios of life. Successful accomplishment of my dream to establish Gravity Advisor Inc, a state of the art financial consultancy was a proof of my entrepreneurial skills. I developed the dream as I was curious about venture capital since Chinese companies started to be listed in American stock exchanges. Starting with NET 263 as CFO assistant, I was later promoted as corporate development manager as I successfully raised $22 million from foreign venture capitals. Later I moved to...
15 Pages(3750 words)Essay

Yuan an international medium of exchange

...in the cost of doing business is that traders always have to raise more local fund to match up with the strength of other trading currencies. This is to say that the exchange rate of those countries continues to go up. For this reason, various countries continue to put in efforts to ensure that the strength of their local currency as against other global currencies is stronger. China as a country has been in the frontline in achieving this all important motive of strengthening her local currency, which is the Yuan. More to this, the country is further making strides of making her currency an international medium of exchange. Currently, the United States Dollar dominates as the world’s most recognized...
8 Pages(2000 words)Research Paper

The Transition from Song to Yuan

...The Transition from Song (960-1279) to Yuan (1279-1368) Introduction Throughout history, painting has been an integral representation of Chinese history. Contemporary custodians of the painting art usually borrow from ancient styles by artists. This kind of imitation goes beyond just copying by adding patterns that represent changes in the society’s way of life over time. Consequently, artists are expected to plough immense effort and care in their work as they seek to bring the past into the present. This essay examines the transition and relationship between two of the most important epochs in the history of Chinese painting: Song (960-1279) and Yuan (1279-1368). These two eras recorded...
6 Pages(1500 words)Essay

Decision To Downgrade The Yuan

...Decision To Downgrade The Yuan Economic problems attract various approaches. One such problem is the recent decision by the Chinese government to downgrade the Yuan. The China’s currency on August 2015 hit a four-year low. The currency traded at 6.45 per the United States dollar representing the lowest rate since August 2011. The decision to downgrade has led to turmoil in financial markets worldwide and fears of currency wars and global trade imbalances are starting to surface. The move not only affects the macroeconomy but affects the lives of people as far as the United States. On the international front, the Yuan did not fare well and traded 6.59 to the dollar (Aitken). This essay aims at comparing and contrasting the views... of the...
3 Pages(750 words)Essay

The Yuan as International Currency

.... Inasmuch as the absence of trade during the interim years caused a distortion in price linkages between China and other countries. This caused China to revalue its currency, beginning from its level of 2.46 RMB per dollar in 1972 to 1.50 yuan to the dollar in 1979. This means that the Chinese exporters (which happens to be state-owned companies) lost 0.91 yuan for every dollar earned, amounting to a 38% loss. Seen the other way, prior to the revaluation China’s currency was actually overvalued by more than 60% on the basis of China’s export prices (Yang, Yin & He, 2004). The RMB remained generally...
18 Pages(4500 words)Research Paper

The Yuan as the New Reserve Currency

...reserve before the dollar prior to the First World War, now comprises only 4 percent, and the yen 3 percent. The yuan is but only one of the many currencies that collectively comprise the remaining 3 percent. Figure 1: World’s foreign-exchange reserves vis-à-vis China’s foreign exchange reserves Economist, “Yuan’s Small Step, 9 July 2009 Scenarios of a shift to another reserve currency The dollar may go into freefall, and if an alternative reserve currency exists, countries would no longer be constrained to hold dollars. Fitz-Gerald (2010), investment director of Money Morning and Money Map Press, surmises that consequently, dollars will be dumped in the market, further damaging the...
17 Pages(4250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic China Revalues Yuan for FREE!

Contact Us