China Lowers Value of Its Currency as Economic Slowdown Raises Concerns

[ahtan_china]

That because Vietnam economic is too small it is invulnerably to any major changes even Asian crisis. Second, China does not has ability to bring Vietnam economic down. U.S. and China are different scenario. Both are rivals, both are large, U.S. has ability to cause major effect to one country economic, embargo for example. See U.S. embargo Cuba, Vietnam and North Korea? Can China has that capability?

Dont believe me? I give each of you here 1 million for tell your Xi shooting at any U.S. naval ship.You will witness your country turn to shiit hole.

Sir, Please refer to the Korea war and the U-2 spy plane were shot down in China mainland in the past.

 

[EAsian]

I think this action hold more meaning than the depreciation of yuan.It may means China finally allowed market play a bigger role in deciding the value of yuan.It will cause the appreciation of yuan in long term because it will attract more investment in Chinese yuan in long term.

 

[NiceGuy]

The Chinese economy has grown at an unprecedented rate and no economy this size has been able to sustain such numbers over such a long period of time. Suffice to say - that no one really can predict what will happen. The growth rate was not sustainable - everyone knew that. I doubt it will be doom and gloom but I think there might be a few corrections.

No Chinese really can predict what will happen only bcz your educational system in economics suck, your pple dont have good vision. VNese here predicted it correctly long before CNY fall

Update: today CNY continue to fall 1.6 %, thats make 3,5 % in 2 days

I think this action hold more meaning than the depreciation of yuan.It may means China finally allowed market play a bigger role in deciding the value of yuan.It will cause the appreciation of yuan in long term because it will attract more investment in Chinese yuan in long term.

But it hurt the countries like Russia-JP-SK etc having currency swap wt CN

 

[EAsian]

No Chinese really can predict what will happen only bcz your educational system in economics suck, your pple dont have good vision. VNese here predicted it correctly long before CNY fall

Update: today CNY continue to fall 1.6 %, thats make 3,5 % in 2 days


But it hurt the countries like Russia-JP-SK etc having currency swap wt CN

You don't know about swap，so don't talk about it.The exchange rate of SWAP would be adjusted by market price.

 

[cnleio]

NiceGuy 又在这一本正经的胡说八道 ...

Posted in another thread:

The lower Yuan can help to expand overseas export ... the cheaper 'Made in China' will hit TPP nation export, especially those developing nations. 2015 is not a good year for world export trade, following Japan Yen devalued ... China also do the same thing. The American families still willing to purchase 'Made in China' goods with new cheaper price. In a worse time of world economy, '薄利多销' means this.

U forget there's a huge market of 1.3billion Chinese ... inside China these customers purchase goods with Yuan, above post i said '薄利多销' for overseas export business, for local market there's another words called '出口转内销' 1.3billion market also can spend many 'Made in China' goods ... Before world economy go for better, China just need '薄利多销' & '出口转内销' to drive 2015 GDP. Anyway the lower Yuan will kill many developing nation's export trade without competitive goods with 'Made in China'. Just recent days visited Super-market here, i saw many '出口转内销' goods selling in Wal-Mart & Carrefour. Maybe this time 'Made in China' earn less but still can sell out.

Of course it works ... the worse world economy, the more foreign middle-class families to purchase cheaper 'Made in China' ... coz in their wallet money just for necessary living expenses, no more luxury. Without competitive goods from other developing nations, there's only 'Made in China' with cheaper price to fit for their demands.

Even though foreign economy get worse, there's a 1.3billion Chinese market support 'Made in China' with Yuan ... difference is earn less than overseas trade with USD. China economy & 'Made in China' not easily to die coz at least China has a 1.3billion huge local market for survival compared with other developing nations not.

 

[NiceGuy]

You don't know about swap，so don't talk about it.The exchange rate of SWAP would be adjusted by market price.

We know clearly CNY will fall for a long time while No CNese here could predict it.

When a country like Russia swap currency wt CN, of course they will keep some CNY in its reserve, and now its CNY reserve lost due to the fall of CNY

 

[EAsian]

Don't talk things you don't know，it only make you look stupid...

We know clearly CNY will fall for a long time while No CNese here could predict it.

When a country like Russia swap currency wt CN, of course they will keep some CNY in its reserve, and now its CNY reserve lost due to the fall of CNY

 

[NiceGuy]

Don't talk things you don't know，it only make you look stupid...

Yeah, its make u guys look so stupid now when denying the fall of CNY when discussing wt me in January 2015.

Vietnam wary of plea to expand Chinese currency transactions | Page 2

 

[Jackdaws]

No Chinese really can predict what will happen only bcz your educational system in economics suck, your pple dont have good vision. VNese here predicted it correctly long before CNY fall

Update: today CNY continue to fall 1.6 %, thats make 3,5 % in 2 days


But it hurt the countries like Russia-JP-SK etc having currency swap wt CN

Thanks - I have been called many things - Chinese is a first. I am an Indian.

 

[Guynextdoor2]

aritificial movements and interventions never help in the long term. CHina should probably use all the levers to ease the economy to the new equilibrium levels.

silly comments viet troll

if RMB is not a trusted currency, nobody wants to enter trade contracts denominated by RMB
RMB still maintains a strong currency with values much preserved, particularly in comparison to the dropees and vietcong currency - the "dump" since the trade balances are in our favour

You have nothing in your chips except for TPP
Tell me when the TPP will get finalised across the board before we talk again

Guizhou Dance Troupe

when has 'trade balance' realistically affected the economies in a big way? Theoretically the US owes a big debt to you, but you won't call them to pay the bills because too rapid a slow down there will have a domino effect resulting in too much of an imbalance for you.

 

[Viet]

Yesterday sees the german stock market one of the most severe declines in the youngest history. I lost money too. Thank you China. German export companies such as car and chemistry manufactures suffer a collapsing demand. Even the most optimistic viewers begin to question china success story.

Normally I don't comment chinese economy. This time only few thoughts: China domestic consumption is very weak. A domestic driven economy like America is not yet seen in the horizon. See the declining import figures. So exports. Chinese wages are rising fast, eating into competitiveness. Manufacting output shrinks since 5 months. The overall electricity power consumption rises by 1 per cent. But how can the growth be 7 per cent? Not only chinese stock market is overvalued, but the housing maeket. It is only a matter if time when it bursts.

 

[NiceGuy]

Yesterday sees the german stock market one of the most severe declines in the youngest history. I lost money too. Thank you China. German export companies such as car and chemistry manufactures suffer a collapsing demand. Even the most optimistic viewers begin to question china success story.

Normally I don't comment chinese economy. This time only few thoughts: China domestic consumption is very weak. A domestic driven economy like America is not yet seen in the horizon. See the declining import figures. So exports. Chinese wages are rising fast, eating into competitiveness. Manufacting output shrinks since 5 months. The overall electricity power consumption rises by 1 per cent. But how can the growth be 7 per cent? Not only chinese stock market is overvalued, but the housing maeket. It is only a matter if time when it bursts.

I warned u abt the fall of CNY in January but u seem disagree. Next time, I hope u will read my post abt economy first before making any investing decision.

Base on VN analysis, seems like Xi Jinping wanna play the suicide economic game and try to floor CN commodities as many as possible before TPP come out. So, dont invest in anything now. The economics war just started by China.

 

[Viet]

I warned u abt the fall of CNY in January but u seem disagree. Next time, I hope u will read my post abt economy first before making any investing decision.

Base on VN analysis, seems like Xi Jinping wanna play the suicide economic game and try to floor CN commodities as many as possible before TPP come out. So, dont invest in anything now. The economics war just started by China.

Bro I put very little into China, virtually only in alibaba share. No worry. China right now is like a black hole that draws everything into darkness.

 

[NiceGuy]

China allows yuan currency to drop for third day

• 2 hours ago
• From the section China

The lower yuan is likely to help Chinese exports
China has set the guiding rate for its yuan currency lower for a third consecutive day.

But Thursday's rate of 1% down against the dollar was a smaller margin than the shock cuts earlier in the week.

The bank had on Tuesday announced it would start setting the daily rate based partly on the previous day's trading, bringing the yuan closer to a free-floating currency.

The move triggered concerns over a currency war to boost China's exports.

Recent economic data had seen a decline in Chinese exports, adding to the worries that the world's second largest economy was headed for a prolonged slowdown.

A weaker yuan will make products cheaper abroad, meaning Chinese companies are more competitive on international markets.

China's falling yuan
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Media caption BBC correspondents around the world consider what the devaluation means where they are
Read more: How much control does China now have over the yuan?

Why is China's currency so important?

Karishma Vaswani: The question is not why, but why now?

The Thursday midpoint rate set by the People's Bank of China (PBOC) - the central bank - was 6.4010 yuan for $1, a 1.1% rise from the previous day's 6.3306.

The midpoint is a guiding rate, from which trade can rise or fall 2% during the day.

The national lender again tried to calm concerns over the direction of the yuan, repeating Wednesday's assertion that there was no basis for further depreciation given strong economic fundamentals.

It said the country's strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provided "strong support" to the exchange rate.

But in light of the weak economic data and Tuesday's policy change to set the daily midpoint based on the previous day's trading, market forces could well pull the currency even lower in the next days.

Should the yuan trade in the lower end of its 2% margin below the midpoint, the central bank would likely lower its reference rate once again on Friday.

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Wow wow ! keep falling like a rock, so now, No one doubt that CNY will devalue to half like I predict, right ??