China’s Renminbi: “Our Currency‚ Your Problem” Our Currency‚ Your Problem is a case involving the issue of exchange rate regimes and the impact currency manipulation has on economies and trade. The United States and Europe argued that the Renminbi (RMB) was undervalued and claimed that the People’s Bank of China (PBoC) deliberately manipulated the exchange rate to lower the prices of exports‚ which caused the US and Europe to run huge trade deficits with China. The US and
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662‚ Case 3 1. Do you think the Renminbi is overvalued against the US Dollar? 2. Why does the Chinese government want to keep its currency at an artificially low level against the US Dollar? What is the risk for China? For the US? 3. What would be the consequences of a 20% revaluation (increase in the value of the Renminbi) for China‚ western countries‚ Japan‚ and developing countries? How would it impact workers‚ exporters‚ and importers in China? Various studies have suggested that
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Global Reserve Currency? Jessica Davis Fort Hays State University ECFI 644 International Economics April 30‚ 2012 Dr. Dosse Toulaboe Abstract China’s economy is growing ever larger‚ but is that enough to get the Chinese Renminbi (more commonly known as Yuan) to be accepted as a global market currency? This paper will look into the liberalization‚ but with Chinese characteristics‚ of five determining factors in becoming a country whose currency is a global reserve
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4a The currency regime adopted by China is neither fixed nor flexible exchange rate system. China has announced in 2005 the “end of its firm peg against the dollar‚ instead allowing it to trade within a narrow band against a basket of currencies.” China regime is managed floating system where the currency increases very slowly year by year and the China government prevent the currency from changing quickly in the short term. The reason why Chinese government intervene in the currency market is
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Essay 2: Is The Chinese Renminbi Undervalued? One-way appreciation? Since July 2005‚ first time being revalued after 11 years of fixing at 8.27‚ Chinese Yuan has been heading towards only one direction – all the way from 8.27 to 6.27. Although Yuan is a highly regulated currency by government‚ Chinese officials could no longer peg the Yuan as it used to be in a closed economy because WTO had opened up doors for Chinese manufacturers in 2001 to export cheap goods and services to developed countries
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China And Its Smog Problem. Problems involving the environment are occurring everyday‚ all over the world. Things like Acid Rain‚ Air Pollution‚ Global Warming‚ Hazardous Waste‚ Ozone Depletion‚ Smog‚ Water Pollution‚ Overpopulation‚ and Rain Forest Destruction‚ are some of the many problems faced by our planet today. China‚ (People’s Republic of China)‚ is situated in eastern Asia‚ bounded by the Pacific in the east. The capital‚ Beijing‚ currently has nearly 15 million inhabitants. There
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Environmental problems of China As we know‚ China is a big country that has a lot of resources‚ and has continuously developed itself. However‚ the environmental problems that have troubled us many years are big and unavoidable social problems. Some problems are atmospheric pollution‚ water pollution‚ waste pollution‚ land desertification‚ sand disaster problem‚ soil erosion and destruction of biological diversity. Our environmental problems are becoming more and more serious. We should realize
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Currency war From Wikipedia‚ the free encyclopedia Currency war involves states competing against each other on the foreign exchange markets to achieve a relatively low exchange rate‚ in order to boost their exports. Currency war‚ also known as Competitive devaluation‚ is a condition in international affairs where countries compete against each other to achieve a relatively low exchange rate for their home currency‚ so as to help their domestic industry. Competitive devaluation has been rare
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I. Chinese Economy The remarkable growth in China’s population and economy over the past several decades has come at a tremendous cost to the country’s environment. China has experienced an economic growth rate averaging 10 percent per year for more than 20 years. But sustained growth and the health of the country are increasingly threatened by environmental deterioration and constraints‚ particularly around water. Water is critical for economic growth and well-being; conversely‚ economic activities
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The second half of the 20 century‚ human beings has experienced the most rapid population ageing population process‚ especially in developed countries. Meanwhile‚ China followed the step to get in an ageing society with weak economic strength and an imperfect system which have significant impact in economy and society. In addition‚ the current old-age security‚ health care institutions and traditional management system have not kept pace with the development of old age boom‚ so that China’s government
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