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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| Revaluation of Yuan | | | 2/16/2011 | A mini case study | | Prepared by Angela AgostinacchioAmerican University of DubaiSpring : International Finance Management2011 | | | Revaluation of Yuan synopsis On 21st July 2005‚ Sun rose from the east with shocking news. China government and People’s Bank of China officially changed the value of their currency and thus removed its peg with US dollar. Prior to the revaluation‚ $1 U.S. dollar bought
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globalized business environment‚ the foreign exchange market is playing a more and more important role. This essay firstly discusses the valuation of Chinese Yuan and the global economic balance with reference to the case “Chinese Yuan and Economic Balance” (Question 1). Secondly‚ it continues to focus on the situation of Japanese Yen‚ based on the article “The Yen and Exports: Japan’s Continued Recovery” (Question 2). Finally‚ it discusses three questions about foreign exchange calculations. (Question
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Mini-Case: The Revaluation of the Chinese Yuan 1. Many Chinese critics had urged China to revalue the yuan by 20% or more. What would the Chinese yuan’s value be in U.S. dollars if it had indeed been revalued by 20%? Answer: If the yuan had been revalued to Yuan 6.90/$‚ it would have constituted an increase in its value by 20% against the U.S. dollar: Yuan 8.28/$ − Yuan 6.90/$ × 100 = 20.0%. Yuan 6.90/$ 2. Do you believe that the revaluation of the Chinese yuan was politically or economically
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China in the Global Economy Sakhariyev Nurzhan. Student No: 2011532943 Internationalization of RMB: The impacts on China and Its Trading Partners. After the thirty years of great economic reforms‚ imposed in 1978‚ China has been showing an incredible results and performance. Due to the suitable economic conditions such as cheap labor force and low domestic currency’s (RMB) exchange rate‚ China has become the largest manufacturer of goods and receiver of foreign direct investments‚
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Multinational Corporations and China’s Economy Student’s name Professor’s name Course title Date Abstract This paper seeks to analyze the Economy of China as pertaining to entry and operation of Multinational Corporations. It goes a long way in exploring different factors‚ occurrences and scenarios that have in one way or the other affected the operations of the region in trade. The republic of China has over time grown to be a large economic hub recognized globally. Characterized
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Case Study A Yen for Yuan 1. China is trying to hold down the value of the yuan because the Chinese government believes that the appreciation of their currency can cause serious challenges to its export industry‚ as the price of the exported goods will increase causing the demand for Chinese goods worldwide to weaken and eventually causing serious unemployment in the country. The most obvious sign that China is pursuing a weak currency policy is shown by the Chinese Central Bank had been maintaining
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Engineering Subject Assignment Lecturer: Prof. Dr. Markus Freiburghaus Vo Tran Dinh Hieu – EMFB 5 Topic B: Hedging Currency Risk The discussion on Chinese government exchange rate policy of the Yuan and its impacts to the US economy and the hedging solution What have been the exchange rate policies of the Yuan (CNY) or Reminbin (RMB) of the Chinese Government? Let’s start with the reviewing of the exchange rates separately throughout the history. There are not a lot of readers may know that the
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1 The slow growth of Chinese exports trade as the gloomy world economy.（出口） Recently‚ changes of the demography‚ the factor price‚ supply and environmental protection will increase the cost of Chinese exports. On the other hands‚ the recovery of the U.S economic remains slow‚ also the continuing escalation of the European debt crisis and the slow recovery of the global economy leading the result of the slow growth of Chinese export trade. Facing the situation‚ Chinese government should do more
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Economic Impact of the Chinese Yuan Revaluation Xiaohe Zhang School of Economics‚ Politics and Tourism Faculty of Business and Law The University of Newcastle. Callaghan‚ NSW 2308‚ Australia Telephone: 612-49215034 Fax: 612-49216919 Email: James.Zhang.@newcastle.edu.au Abstract Since the beginning of the economic reform process in 1979‚ the Chinese currency (yuan) was devalued on many occasions until 1994 when the two-tier foreign exchange system was ended. While the official rate of yuan had been maintained
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