EconomicsChina: Currency: trade of the Yuan against other countries, cut-rates from 6.8275 to 6.7980 (a drop of .0295)
If my calculations are correct, there's a difference of 0.0295 between Monday's rate of exchange and Tuesday's. How many of the Chinese govt's Yuan will you get --
• for 1 American Dollar?
As the Market Pulse email text (the same online) reproduced below for semiotic analysis (and for this economics analysis as well) woud indicate, the USA has to take up the global slack and lag. Altho China has certainly lowered the cost of its currency in the last day, how evenly has the Peoples' Gov't conducted its price lowering, country by country? China grants other countries better prices on the yuan in exchange for a basic unit of a given country's currency (euros, pounds, francs, deutsche marks, yen, rubles, etc.), better prices than it grants the USA dollar, even tho China holds scads of USA bonds (and those of many other countries too, three, four ... ). The rate of exchange between China and the USA has been notorious for its one-sided favourablity to China. This hurts America's balance of trade, a kind of further deficit each year --
Read more ...
Thus, difference between yesterday and today's rate = 0.0295.
• or for 1 British Pound? -- to 10.0372 yuan from 10.1382 yuan
Thus, the difference between yesterday and today's rate = 0.1010.
Hence, the raw differentials look somewhat like this, I woud imagine:
China's Yuan has been lowered sl+tly in relation to the British pound: ...... 0.1010.
China's Yuan has been lowered sl+tly in relation to the EU euro: ........... 0.1009.
China's Yuan has been lowered sl+tly in relation to the American dollar: ......... 0.0295.
Hmmmmm ... I wonder what a mathematician-statistician woud find were all the other currencies weid against the yuan -- the US dollar, the UK pound, the Dutch guilder, and the EU euro -- according to the new norms set by the China Foreign Exchange Trade System (CFETS) . What differentials woud appear were we able to compare each country's new rate with those of all the other countries on China's list?, and what statistical trajectories woud be described regarding the pattern of changes? Woud they still show a bias., a heavy hand on the scales, against the USA?
-- EconoMix
indicated
by this email, digital
communication --
news-reading business professionals
who want the gist of the news fast,
as uncluttered as possible by efforts at
comrehensive attention to details,
the gist ...
MARKET PULSE
China lowers US $1.00 parity to 6.7980 yuan
Related stories
HONG KONG (MarketWatch) -- China lowered its U.S. dollar central
parity rate to 6.7980 yuan on Tuesday from 6.8275 yuan the previous
day after allowing the local currency to sharply appreciate in the spot
market on Monday. The lower dollar-yuan parity level comes in the
wake of the central bank's decision over the weekend to remove the
yuan's de-facto peg to the dollar. On any given day, the central bank
allows the U.S. dollar to move 0.5% in either direction from the
central parity rate, while permitting a 3% move in other currencies
versus the yuan. Among other currencies, the China Foreign
Exchange Trade System set the euro parity for the day at 8.3816 yuan
from 8.4825 yuan and the British pound parity at 10.0372 yuan from
10.1382 yuan.
No comments:
Post a Comment