BRICs Biggest Currency Depreciation Since 1998 To Worsen

[faithfulguy]

Height of trolling dude
Your posts were so awesome in 2010,2011

Now the quality of your posts has just gone down the drain

Actually, his posts were influenced by the Indian arrogance. The same can be said about my posts as well. When I first joined the group, I supported Indians so much that many Chinese and Pakistani thought that I was an Indian. The Chinese asked me a lot of chinese phrases to check my identity.

Unlike rupee, ruble or real, the reason why Yuan has not deprecated because it is pegged against the dollar

Trust me, US do not not Yuan to depreciate. China has kept Yuan low enough already.

 

[Boson]

Actually, his posts were influenced by the Indian arrogance. The same can be said about my posts as well. When I first joined the group, I supported Indians so much that many Chinese and Pakistani thought that I was an Indian. The Chinese asked me a lot of chinese phrases to check my identity.



Trust me, US do not not Yuan to depreciate. China has kept Yuan low enough already.

Trust me, US want to take back the dollars they put in as FDI .... they wanted more yuan per dollar then, and now want more dollar per yuan when getting out.

 

[FairAndUnbiased]

Unlike rupee, ruble or real, the reason why Yuan has not deprecated because it is pegged against the dollar

how can it be pegged if it has appreciated 40% within 7 years?

Trust me, US want to take back the dollars they put in as FDI .... they wanted more yuan per dollar then, and now want more dollar per yuan when getting out.

ever hear the term "time value of money"?

 

[Chinese-Dragon]

how can it be pegged if it has appreciated 40% within 7 years?

That is called Indian logic.

"Pegged" means a "fixed exchange rate"... which is clearly not true for the Yuan, since it has been appreciating against the dollar.

 

[kawaraj]

I am thinking of it, irony is that depreciation is actually good for China's export driven economy.

 

[Jade]

Trust me, US do not not Yuan to depreciate. China has kept Yuan low enough already.

how can it be pegged if it has appreciated 40% within 7 years?

It is surprising that you guys don’t know that Yaun is pegged to Dollar.

On July 21, 2005, the peg was finally lifted, which saw an immediate one-off RMB revaluation to 8.11 per USD.[35] The exchange rate against the euro stood at 10.07060 yuan per euro.

However the peg was reinstituted unofficially when the financial crisis hit: "Under intense pressure from Washington, China took small steps to allow its currency to strengthen for three years starting in July 2005. But China 're-pegged' its currency to the dollar as the financial crisis intensified in July 2008."

On June 19, 2010, the People’s Bank of China released a statement simultaneously in Chinese and English indicating that they would "proceed further with reform of the RMB exchange rate regime and increase the RMB exchange rate flexibility."[37] The news was greeted with praise by world leaders including Barack Obama, Nicolas Sarkozy and Stephen Harper.[38] The PBoCmaintained there would be no "large swings" in the currency. The RMB rose to its highest level in five years and markets worldwide surged on Monday, June 21 following China's announcement.

China has shifted some of their reserves from dollar accounts to accounts in their competitor nations,[citation needed] leading these other nations to invest in dollars to keep their own currencies down.

Renminbi - Wikipedia, the free encyclopedia

That is called Indian logic.

"Pegged" means a "fixed exchange rate"... which is clearly not true for the Yuan, since it has been appreciating against the dollar.

Read my previous post. Anyway, what is Chinese logic

 

[Chinese-Dragon]

^^^ So your own source says that the peg was lifted 7 years ago?

So how can the Yuan be pegged? Are we living in the past?

Read what you posted before, in response to kawaraj:

yes China is least affected, but situation in Russia, Brazil and especially India are worrisome.

I'm afraid this EU crisis is fermenting and soon bring down all BRICs nations except China.

Unlike rupee, ruble or real, the reason why Yuan has not deprecated because it is pegged against the dollar

You think the reason why China's currency has not depreciated in the current EU crisis is because it is pegged to the dollar. Which is clearly false.

 

[hankau62]

That is called Indian logic.

"Pegged" means a "fixed exchange rate"... which is clearly not true for the Yuan, since it has been appreciating against the dollar.

You can consider your currency to be flexible but its not.
Below you can see the currency curve for a decade. The smoothness of CNY against USD tells that this currency is pegged time to time. The free currency fluctuates have a zig-zag curve. You have right to disagree but so do others.

Judge yourself. The graphs are made from xe.com website

 

[Jade]

^^^ So your own source says that the peg was lifted 7 years ago?

So how can the Yuan be pegged? Are we living in the past?

Read what you posted before, in response to kawaraj:





You think the reason why China's currency has not depreciated in the current EU crisis is because it is pegged to the dollar. Which is clearly false.

Pls read the whole post before commenting.

You can consider your currency to be flexible but its not.
Below you can see the currency curve for a decade. The smoothness of CNY against USD tells that this currency is pegged time to time. The free currency fluctuates have a zig-zag curve. You have right to disagree but so do others.

Judge yourself. The graphs are made from xe.com website

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They will try not to understand, and that is Chinese IQ

 

[Chinese-Dragon]

Pls read the whole post before commenting.

Kawaraj was talking about the EU crisis, and you said the reason the Yuan had not depreciated against the dollar was because our currency is pegged. Do you know the difference between 2012 and 2005? Seven years, our currency has not been pegged in seven years, so how could your answer be anything but wrong?

As you can clearly see from the charts above, in 2006 you could get 8 Yuan from 1 dollar. In 2012, you can get 6 Yuan from 1 dollar. Our currency is clearly and strongly appreciating against the dollar.

 

[Jade]

Kawaraj was talking about the EU crisis, and you said the reason the Yuan had not depreciated against the dollar was because our currency is pegged. Do you know the difference between 2012 and 2005? Seven years, our currency has not been pegged in seven years, so how could your answer be anything but wrong?

As you can clearly see from the charts above, in 2006 you could get 8 Yuan from 1 dollar. In 2012, you can get 6 Yuan from 1 dollar. Our currency is clearly and strongly appreciating against the dollar.

Yuan was floating from July 2005 to July 2008. Since July 2008, it is re-pegged.

Anyway, the simple logic is the strength of any currency depends on the demand and supply of that currency in the international markets, meaning the country’ international trade. Major portion of Chinese economy is from trade, and western markets are not doing well, hence if Yuan would have been free floating, it certainly would have depreciated.

 

[Chinese-Dragon]

Yuan was floating from July 2005 to July 2008. Since July 2008, it is re-pegged.

Anyway, the simple logic is the strength of any currency depends on the demand and supply of that currency in the international markets, meaning the country’ international trade. Major portion of Chinese economy is from trade, and western markets are not doing well, hence if Yuan would have been free floating, it certainly would have depreciated.

Look at the chart you Indian.

Pegged = FIXED exchange rate. FIXED as in not moving.

How can the Yuan be pegged now, during the EU crisis, when it is clearly appreciating strongly against the dollar?

 

[Jade]

Look at the chart you Indian.

Pegged = FIXED exchange rate. FIXED as in not moving.



How can the Yuan be pegged now, during the EU crisis, when it is clearly appreciating strongly against the dollar?

Pegged means managed and not FIXED, there is a little amount of flexibility the central banks retain in a managed exchange rate.

 

[CZAR]

LOL, the same dream.

First you guys say: "India is the 2nd fastest growing economy in the world!" - When that is clearly false.

Then you guys say: "Well, India is the 2nd fastest growing major economy in the world!" - Which is ALSO false.

Now you are reduced to saying "Well, at least we are the 2nd fastest growing economy in BRIC!"

The problem is that none of the other BRIC's are being downgraded left and right like India is. None of the BRIC nations (apart from India) have been warned by both S&P and Fitch that they will soon be downgraded to "junk" status.

is India the second fastest I the world? Clearly not. But by that same metric even china is not the fastest in the world.

Secondly, the last time i said that India is the 2nd fastest major economy, you objected with the usd 1 trilion threshold mark that i had used for terming economies as - major. You then advised me to look at at least the top 15 economies for a valid comparison.

Had care to read a bit before offering the advice you would have known that the top 15 countries by GDP are the only ones that have an eco int of over a trillion dollars and more importantly, India - with a growth rate of 6.5% in fy12 - is still the 2nd fastest growing economy.

You cherry pick stories and articles to form opinions which your buddies here are only too keen to lap up.

Cheers.

 

[Chinese-Dragon]

Pegged means managed and not FIXED, there is a little amount of flexibility the central banks retain in a managed exchange rate.

Wrong YET again.

What is fixed exchange rate? definition and meaning - Business Dictionary

Fixed exchange rate:

System in which the value of a country's currency, in relation to the value of other currencies, is maintained at a fixed conversion rate through government intervention. Also called pegged exchange rate.

I don't know where you got these weird ideas from. Every single definition on Earth shows that a Pegged exchange rate = Fixed exchange rate.