Whole Network Most Recent TOP10 Entrepreneurship Innovation Private Equity Venture Capital

 

Six Yuan to the Dollar: Would That Be Nice?

Filed in archive Yuan Renminbi by Greg Cruey on November 03, 2007

I read a blog by Richard Brubaker, Founder and Managing Director of China Strategic Development Partners. Rich's company is based in Shanghai, and in a recent blog he talked about the falling Chinese currency, the yuan renminbi.

Rich had some interesting thoughts and I decided I'd point you to them. I agree whole-heartedly with his conclusions that a.) the relationship of China with Western countries like America is often oversimplified in the press and b.) the conclusions we draw about our economic ties with China are often not thought out very well.

Six Yuan to the Dollar: Would That Be Nice?


Rich gives the example of China's role in buying T-bills that finance U.S. debt; he discusses what a 20% swing in the exchange rate would do to the value of those financial instruments to China and to the process of financing U.S. debt. His conclusion? A weaker Chinese currency would make it more expensive to finance America's debt and probably result in higher interest rates at a time when the Federal Reserve is talking about lowering interest rates to stimulate the economy here. Is he right? You decide.

I do know this from my time living overseas and paying for life with the currency of other countries: big, quick changes in the exchange rate can be traumaticlinks and have unexpected, unintended consequences. Personally, I'm not interested in seeing the economy of China (or the U.S.) disrupted by rapid change in the exchange rate...


Advertisement


Permalink: Six Yuan to the Dollar: Would That Be Nice?
Tags: yuan  renminbi  china  exchange  rate 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/100258



Advertisement


Advertisement


CW ToolbarInstall
RSSrss   | See all blog subscribe options
Googlegoogle   |   What is RSS?
Yahoo!yahoo
AddthisAddThis Feed Button
BloglinesBloglines
Newsletter
Advertisement - Book yours here.

Use our search feature to look for other interesting posts

Just this blog Whole network
  • ChinaVentureNews seeks news contributions



    If you are an analyst, tech company, private equity firm, service provider or entrepreneur with news to share related to China venture capital send us your relevant news release.

    CVN will post it to our site. We reserve the right to edit the copy because of space limitations, and to make summaries of the release when appropriate-- although a full copy of the release will always be linked to.

    Thank you!

    Please simply use our form here.
Advertisement -
Book yours here..


 
Advertisement
Book yours here.



  • Testimonials

  • 'Exactly what I am looking for.'

    "One of my favorite blogs."
  • Other blogs in the same channel in the Creative Weblogging Network

Advertisement -
Book yours here..






Advertisement - Book yours here..
 
Tagcloud: Agreement Blogs Book review Commodities Conferences Entrepreneurship Incubators and Science Parks Information Sources Innovation Internet IPOs Law M&A Mergers and Acquisitions News Outsourcing Policy Private Equity Sovereign Wealth Funds Sponsored Post Stocks Studies Technology Report Treatment VC and PE: education and training Venture Capital Yuan Renminbi