Will Yuan Depreciate against USD?
December 19, 2008
As the Chinese currency yuan or renminbi appreciated all over 2 years and those buying from China directly felt the rising costs of purchases since the stronger Yuan made the Chinese exports more expensive.
Nearly, for the last 6 months, the currency rate is stabilized at 6.80′s level. However, as the global crisis hit the Chinese economy, there is now the possibility for Yuan’s depreciation. But it is actually very hard because as the rest of the world have deep problems, a China making exports cheaper could or would give way to protectionist reactions against Chinese imports, especially in USA and EU.
Here is Shanghai Daily news about the debate over the depreciation:
ECONOMISTS are divided on the yuan’s movement next year.
Liao Qun, CITIC Ka Wah Bank chief economist, said yesterday he expects the yuan to appreciate 2 percent to 4 percent next year, a “moderate appreciation.” “From a mid and long-term view, the trend of yuan appreciation is irreversible as China continues to integrate with the global economy,” Liao said.
The currency has appreciated 6 percent this year against the United States dollar in the first half with its momentum on hold in the second half after a moderate depreciation in recent weeks.
The People’s Bank of China has said that it will stabilize the local currency and doesn’t rule out depreciation of the yuan.
Liao said he expected the foreign currency to re-emerge as a hot issue when President-elect Barack Obama takes office in January.
“A weaker yuan can help Chinese exporters. However, the question is that when the external demand is shrinking, a relatively cheaper price won’t make big difference,” Liao said. “Only if the yuan depreciated by 20 percent, which is unlikely, can there be a big help for exports. If not, a mild depreciation of the yuan won’t give actual significant help to exporters.”
Lu Zhengwei, Industrial Bank chief economist, had a different view and said depreciation of 10 percent next year would help exports.
“It may be the best timing for the yuan to depreciate since 2002 against the backdrop of the current financial crisis,” said Lu. “Why should China continue to keep its currency up when currencies of other emerging markets are depreciating?”
A depreciated yuan, together with tax rebates, would help exports a lot, he said. “Depreciation is part of a more flexible foreign currency control,” Lu said.
Tags: chinese currency, costs, urban parkingRelated Posts:
Yuan set to climb against US dollar this week
December 15, 2008
Chinese currency yuan or renminbi was pegged to USD until 2005. Since then, the currency is allowed to appreciate unfavorably to those importing from China and to factories in China making exports because it makes the Chinese exports expensive as USD lose its previous value. So, for those importing from China is better to closely follow the currency movements as it directly affects the purchasing costs. Here is the latest situation of renminbi as of 14th Dec:
THE yuan is likely to continue its appreciation against the United States dollar this week.
The Chinese currency edged up to finish at 6.8451 against the US dollar last Friday, according to the China Foreign Exchange Trade System. The yuan closed at 6.8482 by the end of the previous week.
Fan Gang, a central bank monetary policy committee member, noted the modest depreciation of the yuan in the previous week was normal amid short-term volatility, according to a report by Shanghai Securities News.
Meanwhile, the US last Friday said retail sales in the nation fell 1.8 percent last month for a fifth consecutive month amid weak consumer sentiment and tight credit in a deepening recession.
Source: Shanghai Daily
Tags: renminbi, mechanical parking garages, foreign exchangeRelated Posts:
Advanced Mobile Phone Parking Solution
December 13, 2008
Basingstoke & Deane Council is launching Parkmobile’s advanced mobile phone parking solution to provide the motorists with an alternative method of paying for their parking charges in their pay & display car parks.
Whilst the traditional ‘pay and display’ parking still applies, motorists who park in the council’s pay & display car parks in Basingstoke could also pay for their parking using their mobile phone from 1st September 2008.
Parkmobile’s cashless parking by mobile phone offers motorists the luxury of parking without searching for coins, or predict how long they are going to park for. It only takes a short call to start and stop parking transactions from the comfort of a car.
The motorists can use their mobile phone to register and use the system instantly on arrival at a parking space. The enforcement is carried out using a GPRS enabled mobile phone to check the validity of the parking. The parking attendant enters the vehicle registration number on the device and reads the status of the parking transaction on the display.
Surveys show that the majority of the people who have used this service were impressed by its convenience and user-friendliness in addition to the system’s financial benefits of not overpay for parking or receiving penalty charge notices because they could not get back to their car quickly enough to top-up a pay and display machine.
Source:Â Â Â Â Â Â Â Â http://www.parkmobile.com
Tags: parking news, vehicle registration number, chinaparking websiteRelated Posts:
Return of VAT on recycled materials
December 13, 2008
CHINA will restore a value-added tax on domestic recycled materials, including scrap metals, effective from January 1, 2009, the Ministry of Finance said yesterday in a statement on its Website.
The restoration of the VAT, which is usually 17 percent in China, may raise scrap metal prices and make imported materials more competitive. Before the end of 2010, recyclers that meet certain criteria will have part of the VAT they pay refunded.
Tags: chinese car parking, China's parking industry, chinaparking websiteRelated Posts:
Qi says hard times for steel to continue
December 8, 2008
For the buyers importing steel from China or having domestic demand to Chinese suppliers must keep on suppliers. Here is the latest news from Chinese supliers:
CHINA’S steel industry has entered a hard time after seven years of rapid expansion, and a turnaround is unlikely until the second quarter of next year, according to Qi Xiangdong, deputy secretary with China Iron and Steel Association.
Slackening demand at home and overseas has hit the country’s 71 major steel makers, said Qi.
Their profit totaled 126.8 billion yuan (US$18.5 billion) during the January-October period, down 0.93 percent from a year earlier.
Forty-two large or medium-sized steel companies posted losses in October. The combined losses reached 7.8 billion yuan.
The proactive fiscal policy and moderately loose monetary policy as well as the central government’s efforts to boost domestic demand and fixed asset investments would all have a positive impact on the development of the steel manufacturing industry in 2009, Qi said.
Last month, China unveiled an estimated 4-trillion-yuan stimulus package as part of its bid to offset adverse global economic conditions by boosting domestic demand.
The money is to be spent over the next two years to finance programs including low-income housing, rural infrastructure, water, electricity, transportation, the environment, technological innovation and rebuilding from several disasters, most notably the May 12 earthquake.
Although the elimination of export duties on 67 types of steel from December 1 would help cut the cost of exports, Qi expected steel exports to slump next year due to dwindling global demand.
Tags: iron and steel, supplier, exportsRelated Posts:
