+ Stocks
+ Futures
+ PE
+ China Economy
+ World Economy
Home > Investment Memo > China Economy
Yuan Undervalued, in Politics or Economics Terms?
Author£ºMaogeUpdate£º2010/3/23 16:10:10¡¡Browse£º453939
Over weeks, Chinese currency value was under grill, and it was at the burning point on March 15th when 130 US Congressmen in a letter accused China of artificially manipulating its currency, RMB, value low.

In the West, it is said that RMB is undervalued by 25 to 40% to U$ and other currencies. And in the US, an estimate of 41% devalued against U$ by Peterson Institute was widely picked up. Here is a question, how were the numbers figured out? Since RMB is nonconvertible at the moment, there is not a market for RMB valued by supply and demand, so all the figures must be calculated by an assumption. As a Consequence, a bias assumption could not be avoided while an exchange rate is put at front of a country¡¯s interest.

In addition, it matters in considering Yuan value from the angle one stands. For example, Economist (March 17th) cited again the so-called Big Mac Index showing its readers yuan is 49% below its fair-value benchmark with U$. I have 2 questions: 1) while looking at Big Mac price, why Economist forgot Mac¡¯s labor cost in China? 2) why didn't Economist pick up Costa Coffee¡¯s China prices as instead to show its readers?

The conclusion is arbitrary for a political purpose in the letter that the US politicians blamed China for maintaining Yuan devalued from the US-China trade deficit only. Similarly, any figures above calculated could not be more than a political purpose either. 

No one denies Chinese currency has been a political issue for a long time. It is no surprise that it is now becoming hot button again. As Jim O¡¯Neill puts ¡°it¡¯s unfortunate that we (the West) have so much political angst around this.¡±  since Yuan ¡°actually isn¡¯t particularly undervalued anymore¡±. 

Is Yuan undervalued? It depends on your looking at it in a Politics way or an Economics way.

1 WalterTremi 2020/10/1 13:16:00
viagra for sale <a href=" ">generic viagra</a> viagra without a doctor prescription or <a href=" ">buy sildenafil</a> online doctor prescription for viagra or <a href=" ">generic viagra pills</a> where to get viagra or <a href=" ">buy sildenafil</a> cheapest viagra online 
ed for men - viagra pills and - buy viagra and - discount viagra and - viagra prices 
canadian pharmacy viagra <a href=>buy sildenafil</a> generic viagra names , <a href=>buy sildenafil</a> viagra walmart , <a href=>cheap sildenafil</a> viagra online
2 EdwardMot 2020/10/1 8:34:01
how much does viagra cost <a href=" ">ed solutions</a> cvs viagra how to get viagra without a doctor 
buy viagra online cheap - <a href=>ed dysfunction treatment</a> canadian viagra
3 JulianHieni 2020/10/1 5:27:28
buy generic viagra <a href=" ">generic viagra pills</a> where to get viagra where can i buy viagra over the counter 
generic viagra names <a href=>generic viagra</a> viagra over the counter walmart
4 EdwardMot 2020/10/1 3:28:22
viagra walmart <a href=" ">buy viagra generic</a> canadian pharmacy viagra cheap generic viagra 
viagra without a doctor prescription usa - <a href=>best price for generic viagra on the internet</a> canadian pharmacy generic viagra
5 EdwardMot 2020/9/30 22:58:41
viagra without a doctor prescription usa <a href=" ">generic viagra pills</a> viagra canada viagra pills 
generic viagra names - <a href=>canadian drugs online</a> viagra prescription online
6 IssacPseug 2020/9/30 22:52:31
buy viagra online cheap <a href=" ">ed devices</a> viagra from canada 
over the counter ed - canadian pharmacy viagra
7 JimmyOredo 2020/9/30 22:46:51
viagra online canada <a href=" ">natural herbs for ed</a> generic name for viagra buy viagra online canada 
generic name for viagra - <a href=>buy sildenafil</a> how much viagra should i take the first time?
8 EdwardMot 2020/9/30 18:37:02
viagra canada <a href=" ">generic viagra without a doctor prescription</a> canada viagra viagra pills 
buy viagra online canada - <a href=>buy viagra generic</a> how much will generic viagra cost
9 EdwardMot 2020/9/30 15:19:31
viagra price <a href=" ">generic viagra</a> buy viagra online viagra no prescription 
viagra - <a href=>mens ed pills</a> viagra from india
10 Richardchabe 2020/9/30 8:59:13
online viagra prescription <a href=" ">cheap sildenafil</a> - cvs viagra, <a href=" ">viagra</a> - buy generic viagra online, <a href=" ">generic viagra</a> - roman viagra 
viagra without a doctor prescription: buying viagra online or cheapest generic viagra or otc viagra or where can i buy viagra over the counter or viagra price 
viagra no prescription <a href=>viagra</a> where can i buy viagra and <a href=>cheap sildenafil</a> viagra generic and <a href=>viagra without a doctor prescription</a> viagra prescription online
Total 21740 | 1-2174Pages | First Prev Next Last Goto£º
Username£º Visitors
TIPS: Please express your personal view on civilization and law-abiding attention to£¡£¨200 characters or fewer£©
COPYRIGHT © 2009 Shanghai Baopu Investment Co. Ltd ALL RIGHTS RESERVED