China’s Currency

China’s Currency - Chinas Currency Mark...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
China’s Currency Mark Warr • Marty Gille
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Should china revalue its currency? Why would the u.s. like that?
Background image of page 2
Agenda Timeline The Cycle Effects of Revaluation Our Answer
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Timeline 1995 – 2005: China’s currency 8.28 yuan/dollar After 2005 - 2011: Pegged to a basket of currencies consisting of the U.S. Dollar, Euro, Japanese Yen, South Korean Won, Thai Baht, U.K. Pound, and Russian Ruble This change revalued the yuan to 8.11 yuan/dollar
Background image of page 4
Current Events October 10, 2011: The renminbi rose 2.2% against the dollar, the largest jump since July 2005 when China ended a formal peg Today: 1 U.S. dollar = 6.37 Chinese yuan
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
How They Peg U.S. banks send dollars to Chinese bank when a U.S. company purchases goods from a Chinese company Chinese government forces Chinese banks to exchange dollars received for yuan at a specified price A lot of yuan are being created which has caused inflation fears in the past The central bank in China has increased the reserve requirement for banks which keeps
Background image of page 6
The Cycle Chinese Bank Chinese Producer US Bank
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
If China Revalued its currency…
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Net Exports? It would be more expensive for us to
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/29/2011 for the course BUS 453 taught by Professor Jerrynelson during the Fall '11 term at BYU.

Page1 / 16

China’s Currency - Chinas Currency Mark...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online