Yuan (CNY) Hits Record 11-Year Slump Vs. USD [7.10] On Financial Meltdown Fears

[Hamartia Antidote]

https://en.businesstimes.cn/articles/117556/20190823/yuan-forex-cny-usd-china-currency-renminbi.htm



Yuan now at 7.10 to the USD

 

[Tumba]

https://en.businesstimes.cn/articles/117556/20190823/yuan-forex-cny-usd-china-currency-renminbi.htm



Yuan now at 7.10 to the USD

likely devaluation by Chinese govt. to take care of increase tarrifs on Chinese products, seems like chinese stuff will become cheaper for rest of world.

 

[Chhatrapati]

likely devaluation by Chinese govt. to take care of increase tarrifs on Chinese products, seems like chinese stuff will become cheaper for rest of world.

Not really, this will only help the US, because the US imports gets cheaper. As for rest of world, the USD is actually strengthening for the past few days and Chinese imports will get expensive as USD is still the global currency and most currencies are pegged against USD.

 

[nang2]

likely devaluation by Chinese govt. to take care of increase tarrifs on Chinese products, seems like chinese stuff will become cheaper for rest of world.

It is only a part of the reason and not the main part. China has been trying to support CNY and that support hasn't got any appreciation from US side. So, this move is just the way China says: screw it.

 

[Gorgin Khan]

Not really, this will only help the US, because the US imports gets cheaper. As for rest of world, the USD is actually strengthening for the past few days and Chinese imports will get expensive as USD is still the global currency and most currencies are pegged against USD.

Very good analysis for convincing yourself. Similarly the US exports will also decrease due to increase in import prices for china and Chinese counter tariffs. This wind is not blowing in a single direction.

 

[Beast]

Very good analysis for convincing yourself. Similarly the US exports will also decrease due to increase in import prices for china and Chinese counter tariffs. This wind is not blowing in a single direction.

But Indian will always be selective of their argument. Thinking stamping on their own foot will only hurt the enemy.

https://en.businesstimes.cn/articles/117556/20190823/yuan-forex-cny-usd-china-currency-renminbi.htm



Yuan now at 7.10 to the USD

Trump will feel sad becos it neutralise his Tariff plan on China import. China is so smart.

 

[Chhatrapati]

Very good analysis for convincing yourself. Similarly the US exports will also decrease due to increase in import prices for china and Chinese counter tariffs. This wind is not blowing in a single direction.

US is a net importer and more than half a trillion in deficit so, convince me how is it good for the Chinese? Chinese counter Tariff will have less effect in comparison to US tariffs because of higher deficit with China. Meanwhile,China has reduced value of it's currency to offset the tariffs.

 

[antonius123]

But Indian will always be selective of their argument. Thinking stamping on their own foot will only hurt the enemy.



Trump will feel sad becos it neutralise his Tariff plan on China import. China is so smart.

Not only neutralize, but it will only make China's goods cheaper than those from any other countries.

China's tourist will decline, export to countries other than US will increase.

Not really, this will only help the US, because the US imports gets cheaper. As for rest of world, the USD is actually strengthening for the past few days and Chinese imports will get expensive as USD is still the global currency and most currencies are pegged against USD.

The more expensive Dollar, the more expensive US goods, hence the lesser competitive US goods.

Yuan is controlled by China not by market, therefore the decrease of value is not due to market reaction but by Beijing's policy for certain purpose.

 

[Hamartia Antidote]

likely devaluation by Chinese govt. to take care of increase tarrifs on Chinese products, seems like chinese stuff will become cheaper for rest of world.

An even better solution would be to lower it to 1000 yuan to 1 USD. Think how that would help their exports. Who cares about capital flight and bank runs...

https://amp.scmp.com/economy/global...rency-slides-fresh-11-year-low-sparking-fears
China’s yuan currency slides to fresh 11-year low, sparking fears of capital flight from Asia

They had to do this in May
https://www.scmp.com/business/banki...ks-quietly-lower-daily-limit-foreign-currency
Chinese banks quietly lower daily limit on foreign-currency cash withdrawals

• Lenders have reduced the ‘scrutiny benchmark’ for US dollar withdrawals to US$3,000 from US$5,000 on the instructions of the central bank

 

[antonius123]

An even better solution would be to lower it to 1000 yuan to 1 USD. Think how that would help their exports. Who cares about capital flight and bank runs...

https://amp.scmp.com/economy/global...rency-slides-fresh-11-year-low-sparking-fears
China’s yuan currency slides to fresh 11-year low, sparking fears of capital flight from Asia

They had to do this in May
https://www.scmp.com/business/banki...ks-quietly-lower-daily-limit-foreign-currency
Chinese banks quietly lower daily limit on foreign-currency cash withdrawals

• Lenders have reduced the ‘scrutiny benchmark’ for US dollar withdrawals to US$3,000 from US$5,000 on the instructions of the central bank

From asia not from china.

 

[lcloo]

Devaluation of Yuan makes US made products very expensive = reduced US exports.

And it also means cheaper China made products vs made in Vietnam/Thailand/India etc unless they also devalue their currencies.

Cheaper made in China high quality products like Huawei P30 Pro will increase their global sales. Meanwhile the cheap low quality products will be made in other developing countries.

 

[antonius123]

Also with lower yuan value, US companies in china will get more difficulty to withdraw from china if they want to comply Trump instruction.

They will face both tariff + cheaper yuan = become very very expensive for china market if they sell to china consumen by exporting from outside china.

 

[Pakhtoon yum]

What makes you think they arent devaluing their currency by purpose? Every economist is talking about a recession in 2020-2021 because the US is printing more money to make it look like their economy is going good. That bubble is going to pop

 

[Menthol]

Growing 6%, but the currency value fall 11%.

It means China in 2019 will grow -5% in terms of the USA dollar.

But I do believe that CCP doesn't care about it, as they are more focused on reality on the street rather than fake value.

 

[antonius123]

Growing 6%, but the currency value fall 11%.

It means China in 2019 will grow -5% in terms of the USA dollar.

But I do believe that CCP doesn't care about it, as they are more focused on reality on the street rather than fake value.

That means the gap between nominal GDP and PPP GDP will be getting wider.