Tag Archives: Currency

China’s Impact on Global Currencies

China made headlines on June 19 when it announced that it would release the yuan from its dollar peg and allow the currency to float against a basket of currencies instead. While most China watchers cautioned that a rapid appreciation of the yuan was not in the cards, the conventional wisdom was that annual increases […]

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China’s Currency Basket: One Month Later

On June 19, the Peoples Bank of China released the yuan’s peg to the U.S. dollar, and announced that it would instead peg the yuan to a basket of currencies. China regards the composition of the currency basket as a state secret, and officials haven’t publicly disclosed what currencies are being used in the basket. […]

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Is China Buying the Euro?

After dropping precipitously from over $1.50 at the beginning of 2010 to a four-year low of $1.19 on June 7, the Euro has been recovering ever since. On Friday, the Euro closed at $1.26, up sharply in the week’s last three days of trading. Not wanting to suffer the same plight as Greece, Germany, the […]

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A Revalued Yuan: Will It Improve the United States Trade Balance?

Yesterday morning, news reports were filled with headlines that President Barack Obama had “vowed to get tough” with China on its currency. By the end of the day, the headlines told how China was “hitting back” over Obama’s criticism of its currency policy. And so it goes. A currency dispute between the two superpowers now […]

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Predictions for 2010

The global economy is much more stable today than it was at this time last year, but that doesn’t make 2010 any easier to predict. In January 2009, the debate was all about numbers. Would China’s economy grow by 8 percent as the government was predicting, 7.2 percent as the World Bank concluded, or considerably […]

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Interesting Twist on China’s Currency

Interesting Twist on China’s Currency

When I first came to China in 1992, the official exchange rate for the renminbi against the US dollar was fixed at 5.5 to one, and foreigners could only use Foreign Exchange Certificates–FEC in the vernacular of the day–for their purchases in the country. High inflation in 1993 and 1994, however, caused black market rates […]

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Low Expectations for Asia Trip

Low Expectations for Asia Trip

The Obama Administration has lowered its expectations for what the President may accomplish on his four-nation Asia trip, which begins today in Japan, and also includes visits to Singapore, China and South Korea. As reported in The Wall Street Journal: Administration officials say the President isn’t likely to bring along tangible concessions on hot-button issues, […]

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