Renminbi (RMB)/Yuan Appreciation & Internationalization

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Stealthflanker

Senior Member
Registered Member
coolgod said:
You and your friends are brainwashed by western MSM. Look up a USD/CNY over the years, where is the devaluation? Don't just spew out propaganda, do some basic research first. Why don't you educate yourself with some RMB indices like CFETS RMB Index before making these baseless accusations.
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I am not accusing. Maybe my wording isnt good enough. But one thing for sure is that i am not reading too much MSM. My friend did.

I am looking for the comparative information.
 
H

HereToSeePics

Junior Member
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Stealthflanker said:
One thing i often see being discussed here in Yuan internationalization is that Yuan devaluation by Chinese government. Many of my friends think that would make a "real" internationalization impossible as imagine having your forex reserve devaluate when Chinese decide to devalue Yuan to keep export goods competitiveness.

Maybe someone here can give more insight on the issue.
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The RMB trades within a relatively stable band relative to the USD and it's current price is within a standard deviation of it's historical price of the last 2 decades. Now if you want to discuss devaluation - compare USD to assets and commodities with tangible value such as precious metals, energy, grain, timber, iron, copper, et al.
 
56860

56860

Senior Member
Registered Member
Stealthflanker said:
One thing i often see being discussed here in Yuan internationalization is that Yuan devaluation by Chinese government. Many of my friends think that would make a "real" internationalization impossible as imagine having your forex reserve devaluate when Chinese decide to devalue Yuan to keep export goods competitiveness.

Maybe someone here can give more insight on the issue.
Click to expand...
The recent devaluation of RMB is due to high interest rates in the US, not a result of any doing on the part of the Chinese government. RMB will appreciate once interest rates are lowered.
 
tphuang

tphuang

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Yuan being a primary trading currency and having UnionPay/AliPay/WechatPay as major payment systems in ASEAN should be a primary focus for China in the coming years.
“78.6 per cent of overseas industrial and commercial enterprises interviewed said that when the liquidity of international currencies such as the US dollar and the euro is relatively tight, they would choose yuan as a new choice of financing currency, and this ratio has increased by 7.4 percentage points compared with the survey results in 2021.”
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Acknowledging the growth of yuan trading in Russia last year, the Bank of China saw potential in offshore yuan trading in Africa, highlighting that Chinese financial institutions in Zambia, South Africa, Angora, Djibouti and Mauritius can consider offering yuan deposit, lending and remittance services.
Among the offshore yuan centres in East Asia, outstanding yuan deposits in South Korea declined by 4.8 per cent in 2022 to US$1.78 billion from a year ago, the Bank of China said.
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M

Moonscape

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sunnymaxi said:
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CEO of Russia's second largest bank to Reuters: "The time has come when China will gradually remove currency restrictions…China understands that they will not become world economic power Number 1 if they keep their yuan as a non-convertible currency."
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I think a lot of countries want China to do that. China won't, despite the geopolitical benefits. The risk of domestic economic destabilization (from Dutch disease and the currency trilemma) is too high.
 
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