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currency war betwent china & usa





obamacs
how do u think the currency way betwent china and usa?is chines yuan really lower than its reailty price?is usa press china goverment for itself profit $so call usa value?
k_s_baskar
usa $ is global currency and china currency even did't enter into forex trading then how china currency can able compete with usa dollar pls. explain.
PureReborn
The issue is thate China isnt trying to complete with the US Dollar. In the sense that they DON't want to reach par or anywhere close to the Dollar.

It's been a unspoken policy for china to keep the Yuan low as to help with chinese export and reduce competition from other countries. As China now has large holdings in US Dollar, it is in their interest to keep Dollar highly valued against the Yuan.
menino
Most countries want the dollar to be high against their currency, so that they can export goods at a better rate, and in turn get more profit.
But the competition is not China... the competition is the European countries, and the currency being the Euro, as they want to have the dominance in Banking, and trade against the US, but with the laws and taxes that they have, it may take some time, before they do.
otalp
Fed can deprecciate dollar like no problem but there is lot of pressure on it. All they can do let chinese government to apprecitae their curency
deanhills
I'm now more than ever convinced that the Chinese currency will appreciate in value and the US dollar loose value. The US is printing too much money and China is beginning to dominate the world trade, and may surpass the US in having the largest economy in the 2020s.
Cliffer
i'm in contradiction.because i have chinese RMB,if its value is up,i will become richer than before,but on the other hand,i have US and HK dollars too,i don't hope my dollars value get down.
menino
Well, I don't think that the Chinese want the yuan to compete with the US currency at this point of time, mainly to the fact that if the US owes China about a trillion dollars, which the US had borrowed and not yet paid, I think that if the value of the dollar goes down, they will kind of have to pay less in terms of currency value, right?

China already has dominance in the comodities market, as part of its exports, and also as a major financial economy by itself, with its gdp at around 8% - 11% and rising.

It doesn't yet need to put its currency in the market.

I agree that the main competitor to the US currency is the Euro at the moment.

Japan is right now suffering with its economy and currency based on the sad tsunami situation, but I believe it will pick up. But Japan's currency was not much of a competitor to the dollar anyways, as there was always the export factor that has always been taken into consideration.
irkhamov
menino wrote:

China already has dominance in the comodities market, as part of its exports, and also as a major financial economy by itself, with its gdp at around 8% - 11% and rising.

It doesn't yet need to put its currency in the market.


It's quite clear that China will have nothing to do with forex market as long as their products able to flooding all over the world with low price and so-so quality Smile
Higher USD value means their products will seems to be cheaper than other, otherwise lower USD will means that their invest in US Treasury bonds (which is currently biggest holder among other countries) values will drops somewhere. But, as long as they can sell anything around the world with lower price, bonds value may be adjusted Very Happy
the-guide
World Bank's (On Tuesday, May 17) recently reported that Yuan is becoming one of the three major
currencies (the U.S. dollar, euro, yuan).

World Bank reported that the world's money system, the most likely new system will be dollar, euro and
yuan currency composition of three. The dollar power in the global money system will be decreased by 2025.

The share of the global economy growing, and increasingly active in global trade and financial activities,
resulting in the dollars, euros, and yuan play a more important role together.

The new money system model will be dollars, euros and yuan command, three currency composition.

.
.
.
mengshi200
ha,I understand you.but whatever up and down.you have not stand a defeat position.

Cliffer wrote:
i'm in contradiction.because i have chinese RMB,if its value is up,i will become richer than before,but on the other hand,i have US and HK dollars too,i don't hope my dollars value get down.
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