This document discusses the history of international monetary systems and China's currency policy. It provides background on the gold standard and Bretton Woods system, and describes the establishment of the Renminbi and China's dual track currency system. It outlines US concerns about China's currency policy and subsidies for manufacturers. China then introduced a "crawling peg" that referenced the yuan to a basket of currencies rather than just the US dollar. While this was welcomed by some, others remained skeptical of China's commitment to a flexible exchange rate. The document also notes impacts of yuan revaluation on trade and foreign exchange reserves.
G20 & The U.S. Dollar Policy - A PresentationEcon Matters
The Group of 20 ended on Nov. 12, 2010 in South Korea culminated in a watered down statement without any meaningful agreement on rising global tensions over trade and currency issues.
This presentation outlines some of my observations regarding G20, U.S. dollar policy and investing strategy in this environment
Discuss the effect of China-'s government control of the value and exc.docxwviola
Discuss the effect of China\'s government control of the value and exchange rate of the Yuan.
Solution
Answer
Most developed countries allow the market to set the value of their currency. China has taken a different approach. Until 2005, the government kept its currency pegged to the dollar, with the central bank buying or selling currency as necessary to ensure that one dollar was worth around 8.2 yuan. Since 2005, the currency has been pegged to a basket of world currencies, and the exchange rate has changed over time, but China still actively manages the currency\'s value on a day-to-day basis.
Currency devaluation is like a nationwide sale. A currency devaluation helps countries sell more exports, boosting the economy. There are thousands of businesses in China that sell goods and services to customers in foreign countries. Their goods are generally priced in China\'s yuan. So if the yuan becomes less valuable relative to other currencies, Chinese imports become cheaper in other countries. Chinese devaluation is also bad for other countries exports.
During 2008 financial crisis, Chinese government believed to intervene in the market to make its currency artificially cheap. A cheap yuan gave Chinese exporters an advantage in world markets.
Currently the Chinese economy is in the midst of an economic slowdown and has suffered from stock market turmoil which is giving pressure on the yuan.
China is slowly moving toward flexible exchange rates. The IMF re-evaluates the currency composition of its SDR basket every five years. In the long run, China hopes to emulate developed economies with fully flexible exchange rates. The yuan will be included in the basket of currencies used by the IMF (reserve currency) in 2016.
But many believes that the yuan’s value will continue to be closely monitored and managed by the PBOC.
.
CASE STUDY China’s Pegged CurrencyOver the first decade of the .docxwendolynhalbert
CASE STUDY: China’s Pegged Currency
Over the first decade of the 2000s, China developed a substantial overall current account surplus and a large bilateral trade surplus with the United States. In 2006, the current account surplus reached $239 billion, or 9.1 percent of China’s output, and the bilateral surplus with the United States, at $233 billion, was of similar size. A good part of China’s exports to the United States consists of reassembled components imported from elsewhere in Asia, a factor that reduces other Asian countries’ exports to the United States and increases China’s. Nonetheless, trade frictions between the United States and China have escalated, with American critics focusing on China’s intervention in currency markets to prevent an abrupt appreciation of its currency, the yuan renminbi, against the U.S. dollar.
Figure 22-2 shows how China fixed the exchange rate at 8.28 yuan per dollar between the Asian crisis period and 2005. Facing the threat of trade sanctions by the U.S. Congress, China carried out a 2.1 percent revaluation of its currency in July 2005, created a narrow currency band for the exchange rate, and allowed the currency to appreciate at a steady, slow rate. By January 2008, the cumulative appreciation from the initial 8.28 yuan-per-dollar rate was about 13 percent—well below the 20 percent or more undervaluation alleged by trade hawks in Congress. Early in the summer of 2008, in the midst of the financial crisis, China pegged its exchange rate once again, this time at roughly 6.83 yuan to the dollar. In response to renewed foreign pressure, China in June 2010 announced it was adopting a “managed float” exchange rate regime, and under this arrangement, the yuan had appreciated to about 6.12 per dollar by the fall of 2013—a further appreciation of about 10 percent.
FIGURE 22-2 Yuan/Dollar Exchange Rate, 1998–2013
China’s yuan was fixed in value against the U.S. dollar for several years before July 2005. After a 2.1 percent initial revaluation, the currency has appreciated gradually against the dollar.
China’s government has moved so slowly because of fears that it would lose export competitiveness and redistribute income domesically by allowing a large exchange rate change. Many economists outside of China believe, however, that a further appreciation of the yuan would be in China’s best interest. For one thing, the large reserve increases associated with China’s currency peg have caused inflationary pressures in the Chinese economy. Foreign exchange reserves have grown quickly not only because of China’s current account surplus, but also because of speculative inflows of money betting on a substantial currency revaluation. To avoid attracting further financial inflows through its porous capital controls, China has hesitated to raise interest rates and choke off inflation. In the past, however, high inflation in China has been associated with significant social unrest.
What policy mix makes sense for China? F ...
Will bank loans increase, or decrease? Will this stop the recovery in its tracks. Fed at moment is "puchasing" $85 bn in assets from banking system as traditional monetray policy is in "liquidity trap".
My outlook for the year, written in December last year. Overly pessimistic unfortunately but with Spanish yields now over 6%, we\'re not out of the woods yet! (Pls note I did not write the China stocks or currency section.)
Fasanara Capital Investment Outlook | February 1st 2015
1. Seismic Activity On The Rise
2. No Volatility No Gain
3. The Role Of Optionality
4. Crystal Ball
5. Deflation Is A Multi-Year Process
6. Three Big Trades for 2015
International economic integration is a fundamental aspect of globalization, although it's essential to remember that globalization encompasses more than just economics. While economics is a significant part of globalization, it's not the entire picture. Economic globalization plays a crucial role in facilitating global culture and politics. Trade allows for the exchange of cultural products, like movies and music, and is intertwined with political diplomacy, often serving as a basis for international relations.
Given the importance of economic globalization, it's vital to consider how to make the system more equitable. While some aspects of global free trade can be adjusted, it cannot be completely eliminated. International policymakers should focus on making trade deals fairer and ensuring that governments find ways to mitigate the negative impacts of economic globalization while making sure its benefits are accessible to all.
G20 & The U.S. Dollar Policy - A PresentationEcon Matters
The Group of 20 ended on Nov. 12, 2010 in South Korea culminated in a watered down statement without any meaningful agreement on rising global tensions over trade and currency issues.
This presentation outlines some of my observations regarding G20, U.S. dollar policy and investing strategy in this environment
Discuss the effect of China-'s government control of the value and exc.docxwviola
Discuss the effect of China\'s government control of the value and exchange rate of the Yuan.
Solution
Answer
Most developed countries allow the market to set the value of their currency. China has taken a different approach. Until 2005, the government kept its currency pegged to the dollar, with the central bank buying or selling currency as necessary to ensure that one dollar was worth around 8.2 yuan. Since 2005, the currency has been pegged to a basket of world currencies, and the exchange rate has changed over time, but China still actively manages the currency\'s value on a day-to-day basis.
Currency devaluation is like a nationwide sale. A currency devaluation helps countries sell more exports, boosting the economy. There are thousands of businesses in China that sell goods and services to customers in foreign countries. Their goods are generally priced in China\'s yuan. So if the yuan becomes less valuable relative to other currencies, Chinese imports become cheaper in other countries. Chinese devaluation is also bad for other countries exports.
During 2008 financial crisis, Chinese government believed to intervene in the market to make its currency artificially cheap. A cheap yuan gave Chinese exporters an advantage in world markets.
Currently the Chinese economy is in the midst of an economic slowdown and has suffered from stock market turmoil which is giving pressure on the yuan.
China is slowly moving toward flexible exchange rates. The IMF re-evaluates the currency composition of its SDR basket every five years. In the long run, China hopes to emulate developed economies with fully flexible exchange rates. The yuan will be included in the basket of currencies used by the IMF (reserve currency) in 2016.
But many believes that the yuan’s value will continue to be closely monitored and managed by the PBOC.
.
CASE STUDY China’s Pegged CurrencyOver the first decade of the .docxwendolynhalbert
CASE STUDY: China’s Pegged Currency
Over the first decade of the 2000s, China developed a substantial overall current account surplus and a large bilateral trade surplus with the United States. In 2006, the current account surplus reached $239 billion, or 9.1 percent of China’s output, and the bilateral surplus with the United States, at $233 billion, was of similar size. A good part of China’s exports to the United States consists of reassembled components imported from elsewhere in Asia, a factor that reduces other Asian countries’ exports to the United States and increases China’s. Nonetheless, trade frictions between the United States and China have escalated, with American critics focusing on China’s intervention in currency markets to prevent an abrupt appreciation of its currency, the yuan renminbi, against the U.S. dollar.
Figure 22-2 shows how China fixed the exchange rate at 8.28 yuan per dollar between the Asian crisis period and 2005. Facing the threat of trade sanctions by the U.S. Congress, China carried out a 2.1 percent revaluation of its currency in July 2005, created a narrow currency band for the exchange rate, and allowed the currency to appreciate at a steady, slow rate. By January 2008, the cumulative appreciation from the initial 8.28 yuan-per-dollar rate was about 13 percent—well below the 20 percent or more undervaluation alleged by trade hawks in Congress. Early in the summer of 2008, in the midst of the financial crisis, China pegged its exchange rate once again, this time at roughly 6.83 yuan to the dollar. In response to renewed foreign pressure, China in June 2010 announced it was adopting a “managed float” exchange rate regime, and under this arrangement, the yuan had appreciated to about 6.12 per dollar by the fall of 2013—a further appreciation of about 10 percent.
FIGURE 22-2 Yuan/Dollar Exchange Rate, 1998–2013
China’s yuan was fixed in value against the U.S. dollar for several years before July 2005. After a 2.1 percent initial revaluation, the currency has appreciated gradually against the dollar.
China’s government has moved so slowly because of fears that it would lose export competitiveness and redistribute income domesically by allowing a large exchange rate change. Many economists outside of China believe, however, that a further appreciation of the yuan would be in China’s best interest. For one thing, the large reserve increases associated with China’s currency peg have caused inflationary pressures in the Chinese economy. Foreign exchange reserves have grown quickly not only because of China’s current account surplus, but also because of speculative inflows of money betting on a substantial currency revaluation. To avoid attracting further financial inflows through its porous capital controls, China has hesitated to raise interest rates and choke off inflation. In the past, however, high inflation in China has been associated with significant social unrest.
What policy mix makes sense for China? F ...
Will bank loans increase, or decrease? Will this stop the recovery in its tracks. Fed at moment is "puchasing" $85 bn in assets from banking system as traditional monetray policy is in "liquidity trap".
My outlook for the year, written in December last year. Overly pessimistic unfortunately but with Spanish yields now over 6%, we\'re not out of the woods yet! (Pls note I did not write the China stocks or currency section.)
Fasanara Capital Investment Outlook | February 1st 2015
1. Seismic Activity On The Rise
2. No Volatility No Gain
3. The Role Of Optionality
4. Crystal Ball
5. Deflation Is A Multi-Year Process
6. Three Big Trades for 2015
International economic integration is a fundamental aspect of globalization, although it's essential to remember that globalization encompasses more than just economics. While economics is a significant part of globalization, it's not the entire picture. Economic globalization plays a crucial role in facilitating global culture and politics. Trade allows for the exchange of cultural products, like movies and music, and is intertwined with political diplomacy, often serving as a basis for international relations.
Given the importance of economic globalization, it's vital to consider how to make the system more equitable. While some aspects of global free trade can be adjusted, it cannot be completely eliminated. International policymakers should focus on making trade deals fairer and ensuring that governments find ways to mitigate the negative impacts of economic globalization while making sure its benefits are accessible to all.
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Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
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To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Implicitly or explicitly all competing businesses employ a strategy to select a mix
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(i.e., industry structure in the language of economics).
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
The key differences between the MDR and IVDR in the EUAllensmith572606
In the European Union (EU), two significant regulations have been introduced to enhance the safety and effectiveness of medical devices – the In Vitro Diagnostic Regulation (IVDR) and the Medical Device Regulation (MDR).
https://mavenprofserv.com/comparison-and-highlighting-of-the-key-differences-between-the-mdr-and-ivdr-in-the-eu/
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3. Introduction
“We are very concerned about the negative impact of
(China’s) policies on our economic interests”
- US Treasury secretary Timothy Geithner.
2/25/2012 Ankit Sachdeva 3
4. …..
0 The tough talk comes amid concerns that the global currency
order is unraveling, with countries breaking ranks in a `beggar-
my-neighbour’ use of 1930s-style devaluation to help exporters
and shore up their economies.
0 U.S.-China economic ties have expanded substantially over the
past three decades.
0 China is currently the second-largest U.S. trading partner, its
third-largest export market, and its biggest source of imports.
0 U.S. imports from China have risen much more rapidly than U.S.
exports to China, the U.S. merchandise trade deficit has surged,
rising from $10 billion in 1990 to an estimated $273 billion in
2010.
2/25/2012 Ankit Sachdeva 4
5. ..…
0 While most of China’s major economic competitors around the
world have seen their currencies climb against the dollar the
Chinese Yuan has been virtually unchanged.
0 It’s a primary reason China has been able to achieve such a rapid
rise in global economic power.
0 Prior to the financial crisis, the U.S. was on its own to convince
China to adopt a more “flexible currency regime”.
0 The results were modestly successful — only after the U.S.
Congress threatened to impose a tariff on Chinese imports! China
allowed its currency to appreciate by 17 percent against the
dollar between 2005 and 2008.
0 But since the financial crisis, China has returned to a peg against
the greenback.
2/15/2012 Ankit Saxhdeva 5
6. Background
0 The international monetary system came into
existence since the 19th century.
0 After 1870 many countries adopted gold
convertibility.
0 Under the gold standard each currency was defined in
terms of its gold value.
0 One dollar was defined to be equal to the value of
23.22 grains of pure gold or 20.67 US Dollars per
ounce.
0 The gold standard broke down during World War 1
but was brought back in 1925.
2/25/2012 Chetan Chauhan 6
7. …..
0 In 1931 due to massive gold and capital outflows,
Britain departed from the gold standard.
0 In January 1934 the US President Franklin
Roosevelt increased the price of gold from US$20.67
to US$35.00 per ounce.
0 In July 1944 delegates from 44 nations came
together at the Nations Monetary and Financial
Conference at Bretton Woods to discuss post war
recovery.
2/25/2012 Chetan Chauhan 7
8. …..
0 The conference led to the creation of two
international organizations- the IMF and the
International Bank for Reconstruction and
Development(now World Bank).
0 Bretton Woods system –exchange rate as agreed by
member countries.
0 The Bretton Woods system ended on August 1971.
0 In the 1970s the Bretton Woods system was replaced
by floating exchange rates which even continued as of
2007.
2/25/2012 Chetan Chauhan 8
9. CURRENCY IN CHINA
0 Establishment of People’s Bank Of China (PBC) and
Issue of Renminbi (people’s currency).
0 The foreign exchange rate of the Yuan was fixed taking
into account price comparisons of China’s imports and
exports.
0 Fluctuations in Yuan-Dollar Exchange Rate and Dual
Track Currency System in China.
0 China becomes member of WTO.
2/25/2012 Kanika Goswami 9
10. …..
0 US’s dissatisfaction and concerns for Chinese
manufacturers’ subsidies and the undervalued Yuan.
0 Zhou’s statement in defense of China’s currency
policy.
0 “A stable Yuan is in the interests of China and the
world.”
0 US Senators propose legislation imposing 27.5 %
tariff on all Chinese Imports.
2/25/2012 Kanika Goswami 10
11. CHINA SOFTENS ITS STAND
0 On 21st July 2005 china introduced the new exchange rate
known as “CRAWLING PEG”.
0 Yuan was referenced not just to USD but to a basket of
currencies.
0 The Chinese central bank announced that the closing price
of the market each working day would become the central
parity rate for the following day.
0 The fluctuations allowed by PBC:
USD/CHINA – 0.3% above or below the CPR
CNY/MYR & CNY/RUB – 5% above or below CPR
Other currencies 3% above or below CPR.
2/25/2012 Kanika Goswami 11
13. …..
0 Chinese decision to peg currencies with the basket of
countries welcomed by Jim McCormick ,Global head of
Lehman Brothers.
0 The decision indicated that the Chinese were moving
towards a flexible exchange rate system.
0 The decision was welcomed by various economists
and even IMF was satisfied with this decision however
Morris Goldstein, a scholar from Institute of
International Economics were of a different view
which made the revaluation of YUAN a bit skeptical.
2/25/2012 Kanika Goswami 13
14. YUAN’S REVALUATION
0 Chinese Government hinted for change in reforms
over time.
0 21st July : New exchange rate was announced
0 China adopted a managed float system with many
government controls still in place.
0 Yuan strengthened to 8.11 from 8.28 to a dollar.
0 27th July : Central bank announced no further changes
in the value of Yuan.
2/25/2012 Neha Dhoot 14
15. …..
0 These conflicting announcements left a more
confused view of China’s policies.
0 On one hand it seemed to move towards liberalization
of the exchange rate system.
0 On the other, China still looked inclined towards
managing the currency tightly.
0 Change in policy had very less effect on Yuan-US
dollar.
0 Yuan showed little appreciation against USD even
when most other currencies in the basket appreciated.
2/25/2012 Neha Dhoot 15
16. …..
0 In 2006, China became the 2nd largest trading partner of US,
with trade valuation at US$ 281 billion.
0 The US trade deficit with China went up to US$ 232.5
billion.
0 On the other hand, China’s foreign exchange reserves
crossed US$ 987 billion.
0 China was increasing its reserves to keep the Yuan weak by
absorbing excess dollars in the market and issuing the Yuan
instead.
2/25/2012 Neha Dhoot 16
18. Flipside of the coin
0 A trade surplus does not constitute any proof of the currency being
undervalued:
China-sans-Hong Kong shows trade surplus but China-plus-Hong
Kong does not run big trade surpluses
0 Fear of a fall in foreign investments and a slowdown in the domestic
economy:
Stronger Yuan could lead to a fall in China’s agricultural exports ,
resulting in low incomes for the Chinese farmers
0 Apprehensive about the transition to a floating exchange rate system:
Chinese banks burdened with sizeable non performing assets would
not be able to deal with speculative pressures arising from the
floating exchange rates.
2/25/2012 Raghav Kumra 18
19. 0 ¥ Has appreciated with
respect to $.
0 Decrease in foreign
investment
0 Slowdown in Chinese exports
¥ 0 Adversely affect the growth
0 Increase in import of food
articles
0 Decrease in price of domestic
food products
0 Decrease in agricultural
export
0 Lowering the income of
farmers
Quantity of $
2/25/2012 Raghav Kumra 19
20. …..
0 Growing trade deficit was not due to an undervalued Yuan.
0 Infact, Low savings rate in US contributed largely to the
trade deficit. (refer table)
0 The undervalued Yuan forced Chinese banks to invest
the dollar earnings in US treasury securities, which
helped to keep the interests rates in the US low:
Today China tops the list of Major Foreign Holders of Treasury
Securities with around US$ 1100.7 billions worth of treasury
securities.
2/25/2012 Raghav Kumra 20
21. US and China Compared Savings,
Investment and Consumption as a
Percentage of GDP
China US
Gross savings as percentage of GDP 49.8 13.5
Household Savings Ratio 30.0 -0.3
Private Consumption as a % of a GDP 39.9 70.0
Gross fixed investment as a % of GDP 44.4 16.7
Gross National Savings as % of gross national 12 69
investment
Current account balance as a % of GDP 5.2 -6.5
2/25/2012 Raghav Kumra 21
22. …..
0 The undervalued Yuan lowered the price of imports
from China, thereby increasing the purchasing power
of the US Consumers.
0 Low priced imports of Chinese manufactured
products aided the manufacturing sector of US.
0 The difference in key interest rates between the US
and China was more than 300 basis points.
0 The job losses in the US manufacturing sector had
been due to the economic recession in the US.
2/25/2012 Raghav Kumra 22
23. …..
0 China continued to be a large market for US
products.
0 The mutually beneficial relationship between
them would have been disrupted by imposing
tariffs on Chinese goods.
0 US trade deficit was growing at more or less
the same rate with the rest of the world.
2/25/2012 Raghav Kumra 23
24. Current Scenario
0 The U.S. goods trade deficit with China increased $68.5 billion in
2010, and was responsible, alone, for nearly three-quarters
(72.6%) of the growth in the U.S. current account deficit.
0 Between 2000 and 2010,Chinese share raised from 3.9% to 10.5%,
while the U.S. share declined nearly a third, from 12.3% to 8.5%
in the export market.
0 Revaluation would improve the U.S. current account balance by
up to $190.5 billion.
0 2.25 million U.S. jobs and reducing the federal budget deficit by
up to $857 billion over 10 years.
2/25/2012 Raghav Kumra 24
25. Outlook
0 In early 2007, China was a major market for US
companies and an important source of capital for the US
economy.
0 Yuan-US dollar exchange rate remained at levels similar
to late 2006.
0 There were no indications that the Yuan would be
revalued in the near future.
0 Exchange rate on 26 April, 2007 was 7.7265 Yuan to the
US dollar.
2/25/2012 Taqweem Ahmed 25
26. …
0 2006-07: China recorded a GDP growth of 10.5% and
increased exports by 25%.
0 China was one of the world’s largest importers of raw
materials and one of the largest exporters of
manufactured goods.
0 Also it was the world’s third-largest importer, behind
only the US and Germany.
0 Cheap Chinese products captured the world markets- low
prices lured the shoppers.
2/25/2012 Taqweem Ahmed 26
27. …
0 China’s increasing share in the world trade prompted US
government officials to express dissatisfaction over the
pace at which China was moving toward a floating
exchange rate system.
0 China’s currency was appreciating at a fast pace- the
value of which was not market determined.
0 Most economists were not in favor of this sudden
revaluation.
0 On the other hand, China continued to deny US
allegations of currency manipulations, claiming its
currency policy was shaped by national interest.
2/25/2012 Taqweem Ahmed 27
28. .….
0 In march 2007 US Department of Commerce
announced the imposition of penalty tariffs on the
imports of coated free sheet paper from China.
0 According to Carlos Gutierrez, preliminary duties of
between 10.9% & 20.35% would be applied to the
coated paper imports from China.
2/25/2012 Taqweem Ahmed 28
29. ..…
0 Amidst Chinese opposition several producers in US
demanded imposition of trade sanctions against
China.
0 Many economists were of the view that trade
sanctions would backfire and hurt US producers.
0 US companies in business with East Asia were also
expected to bear the brunt of this fallout.
2/25/2012 Manan Shah 29
30. …..
0 It was generally believed that if China allowed the
Yuan to appreciate, it would result in a rise in prices in
the US as well as in several countries.
0 As per XEA Report Yuan was expected to appreciate
by 5 percent against US dollar by 2007 end.However,
Chinese wanted it to be a little slower, and so decided
to take the measures to strengthen the value of Yuan.
2/25/2012 Manan Shah 30
31. Reasons for US CHINA TRADE DEFICIT
0 China restricts access to its markets while
aggressively
0 supporting exports by its domestic firms.
0 China’s low-wage/low-cost advantage.
0 China’s artificially undervalued currency.
0 Americans Consuming, not Saving
0 Relocation of Exports to China from elsewhere in Asia
0 Over counting China exports: Example Apple’s iPod
0 Undercounting U.S. sales
2/25/2012 Manan Shah 31