Showing posts with label British pound. Show all posts
Showing posts with label British pound. Show all posts

Monday, June 21, 2010

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 --

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