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.
Nobody downloaded yet

Should the Chinese be allowed to continue to fix the Yuan - Essay Example

Comments (0) Cite this document
With the growing capacity to compete with International standards, China is emerging 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 paper
Should the Chinese be allowed to continue to fix the Yuan
Read TextPreview

Extract of sample
Should the Chinese be allowed to continue to fix the Yuan

The exhibitions held at 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 United States of America, revalued its currency against U.S dollar, to avoid the fixation of the rate of Yuan against U.S dollar. The stronger Yuan will result in the Chinese products being priced higher. By that the sales in 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. The 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 at 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 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 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 outbreak of International financial crisis, China has maintained stable Yuan exchange rate despite the difficult economic conditions. When there were Asian financial crisis during 1990's, China earned plaudits for ... Read More
Cite this document
  • APA
  • MLA
(“Should the Chinese be allowed to continue to fix the Yuan Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/301190-should-the-chinese-be-allowed-to-continue-to-fix-the-yuan
(Should the Chinese Be Allowed to Continue to Fix the Yuan Essay)
“Should the Chinese Be Allowed to Continue to Fix the Yuan Essay”, n.d. https://studentshare.net/miscellaneous/301190-should-the-chinese-be-allowed-to-continue-to-fix-the-yuan.
  • Cited: 0 times
Comments (0)
Click to create a comment
Summaries on Chinese Yuan Currency
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.
8 Pages(2000 words)Assignment
Revaluation of Yuan
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 market-determined.
3 Pages(750 words)Essay
Chinese Yuan vs. US Dollar
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).
8 Pages(2000 words)Essay
How to fix America
This stuttering economy may need many different steps to get a boost and get to the same level that it was in 1950-1960s era. There are many methods and approaches that can be adopted to improve the economy of the United States. Lately, there
2 Pages(500 words)Essay
Bank for International Settlements. Include assessment of extent of overvaluation or undervaluation of the Chinese yuan over recent years compared to the situations ofthe US dollar, Euro, and Japanese yen
Krugman, like a number of U.S. legislators have called for higher tariffs for Chinese goods as a response to the failure of Chinese authorities to reevaluate their currency. But the question is: Is the Renminbi
1 Pages(250 words)Essay
The Chinese economy has maintained a momentum of rapid growth while many other economies in the world have slumped. How will China continue to maintain such strong momentum
Upon a close review, of China’s development over the last two decades, this study draws the following five factors as the main reasons behind the sustained the country’s rapid economic growth
10 Pages(2500 words)Essay
International finance -use relevant theory (parity relationship, balance of payment effects, and financial asset market considerations) to explain the movement of selected exchange rate (US Dollar ($) / Chinese Yuan (CN)
The following graph shows us that condition of Yuan between 2004 and 2012. China follows the policy of managed exchange rates. In other words, Chinese Yuan is not allowed to change its exchange rate according to the forces of demand and supply instead Chinese
8 Pages(2000 words)Essay
Why Japan should be allowed to continue whaling
Being secure of such ensures the healthy growth of the community as they access, the proteins easily, and at an affordable rate. More to these, the activity leads to the development of knowledge in various areas of scientific research, thus advancing
4 Pages(1000 words)Essay
Fighting skills: They trained their troops on how to fight using various methods both traditional and modern in which they could fight riding on horseback and using modern fighting tools. They
3 Pages(750 words)Essay
Decision To Downgrade The Yuan
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.
3 Pages(750 words)Essay
Let us find you another Essay on topic Should the Chinese be allowed to continue to fix the Yuan for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us