China stop peg to US$!


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Hommie

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Oct 11, 2004
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#1
China's yuan moves up 2% against the US Dollars and the rest of the monetary market felt the impact. Singapore dollar went against the US Dollars to 1.6496. What impact will it do to us?
 

idor

Senior Member
Nov 11, 2004
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#4
that means that if china yuan keeps going up, next time we cannot go to china and expect to live like a king.... :bsmilie:
 

fotoudavid

Senior Member
Mar 11, 2005
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#5
wat can we do?;)

just carry on living like ants here lor.
 

Sjourn

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Aug 9, 2004
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#6
good for import to china, bad for export out from china

CSers can start camera shops in China and import, cheaper...;p
 

tokrot

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Jun 2, 2003
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#7
Can someone explain to me that this is a good thing anot? I thought Stop pegging will not devalue the RMB since it has been underrated valued for long time? That's funny isn't? The stop pegging thing should give US more advantage but not the 2% increase in RMB value because I remember US said something like RMB is too dirt "cheap" as compared to US dollars which gave US exporters disadvantage... Can someone explain? :dunno:
 

idor

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Nov 11, 2004
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#8
tokrot said:
Can someone explain to me that this is a good thing anot? I thought Stop pegging will not devalue the RMB since it has been underrated valued for long time? That's funny isn't? The stop pegging thing should give US more advantage but not the 2% increase in RMB value because I remember US said something like RMB is too dirt "cheap" as compared to US dollars which gave US exporters disadvantage... Can someone explain? :dunno:
In simple terms... if t-shirt made in china is 10 RMB and t shirt made in US is 10 USD, people will buy from china cos its almost 10% the price.... but if rmb increase in value, then american made products will seem cheaper....

In IT sense... if 1 indian rupee is equlivent to 1 USD then america will send more IT jobs to sg cos wages in sg will be lower than india.... :bsmilie:
 

Astin

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Mar 2, 2002
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#9
tokrot said:
Can someone explain to me that this is a good thing anot? I thought Stop pegging will not devalue the RMB since it has been underrated valued for long time? That's funny isn't? The stop pegging thing should give US more advantage but not the 2% increase in RMB value because I remember US said something like RMB is too dirt "cheap" as compared to US dollars which gave US exporters disadvantage... Can someone explain? :dunno:
U need a economic grad to explain this...
But for layman (me) understanding, the world's largest producer is China and world's largest market is USA, so now if China RMB move up, the China made goods become more expensive, then they sell goods in USA more expensive, USA consumers will pay more for China goods, and China will earn more US$...
 

Zplus

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Mar 16, 2002
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#11
When RMB increase in value, china exports are more expensive. When price goes up, less people will buy (just look at B&S section for micro economics happenin).

Why US wants to unpeg RMB?

Coz china has been exporting its cheap stuff into US and hurting its local manufacturers. If RMB goes up, the china imports seem more expensive.
;p

I think its not gonna affect much though.... coz china's manufacturing cost is so much cheaper....
 

Sjourn

Senior Member
Aug 9, 2004
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#12
Zplus said:
When RMB increase in value, china exports are more expensive. When price goes up, less people will buy (just look at B&S section for micro economics happenin).

Why US wants to unpeg RMB?

Coz china has been exporting its cheap stuff into US and hurting its local manufacturers. If RMB goes up, the china imports seem more expensive.
;p

I think its not gonna affect much though.... coz china's manufacturing cost is so much cheaper....

Yes it will affect, I'm here. US wants to protect thier economy, they are afraid of China powerhouse effect.

Imports in China will be cheaper, export from China will be more expensive. Every manufacturer is selling USD and paying RMB for materials. so there's a pinch already, manufacturers have not even recovered from raw material price hike from last year, and now they are hit by this. all thanks to the US...create a war to control oil and use politics to corner China:thumbsd:
 

Benign

Senior Member
Jan 30, 2004
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gallery127599.fotopic.net
#13
Whether they like or dislike the China powerhouse, but they can't live without it. Everyone want a slice of the cake......:bsmilie:

At the end, it is all about $...be it RMB, Dollar, Yen.
 

tokrot

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Jun 2, 2003
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#14
Sjourn said:
Yes it will affect, I'm here. US wants to protect thier economy, they are afraid of China powerhouse effect.

Imports in China will be cheaper, export from China will be more expensive. Every manufacturer is selling USD and paying RMB for materials. so there's a pinch already, manufacturers have not even recovered from raw material price hike from last year, and now they are hit by this. all thanks to the US...create a war to control oil and use politics to corner China:thumbsd:

very true indeed... :)
 

BBTM

Senior Member
Nov 23, 2004
2,211
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#15
Let's hope for one day, the Sg $ = USD! :thumbsup: :cheers: :vhappy: :cheergal:
 

Hommie

Senior Member
Oct 11, 2004
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Singapore
#16
Don't you feel its weird? The Americans have ask similarly the Taiwanese and the Japanese to float their currencies in the 70s-80s that have devastated their economies at that time(Japan is still recovering from it) because of the trade deficit with the Americans. This time it might have a different effect from the previous as China's economy affects the entire world.

Labelled as the 'Factory of the World', China manufactures anything to everything from clothes to cars that is used by consumers all over the world everyday. What is it to be gain by the American by its politicians to force yuan's raise? If they get their wish to increase yuan's valuation by 10% China will no longer be a cost effective solution for many products to be manufactured there, thus companies will move out and devastate its economy. This bold move by China to appease US of a threat of embargo to protect their own industries and at the same time goods manufactured in China will go up at least 2% or more will be felt by the consumer in US and the world who uses product made in China. Ultimately, its the consumer like us who pay the price......
 

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