Author: jimmy67

Are Asian central banks using RMB as reserves now? [Copy link] 中文

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Post time 2007-8-8 21:27:16 |Display all floors
Zinc06 is absolutely correct the wealth of a nation should be measured in terms of GDP per capita. Presently China ranks very lowly on that measure ( currently ranked 115th in the world). http://www.nationmaster.com/grap ... -nominal-per-capita

However if the exchange were to increase overnight (say by 25%) the country would become wealthier in world terms. To achieve the same by economic growth would take many years. The exchange rate isnt going to appreciate by 25% overnight, but China's trade surplus is so large it can afford to see its exchange rate appreciate with limited negative consequences. Indeed this would help contain inflation too. A stronger currency is generally a good thing for countries with net wealth (and vice versa).

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Post time 2007-8-8 23:31:36 |Display all floors

If America Invades Myanmar

Better than 50% chance it would speed up the enclave's joining up as part of China in a Federal arrangement.

Think of it - that adds only 50 million in new population, but LOTS of new arable land for agricultural technology, and great access to the Indian Ocean.  

We should hope that happens soon.

Yes it would be nice to have the currency appreciate.  But China's level of exports need to be twice or three times the current level, before the abrupt revaluation should occur.

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Post time 2007-9-15 16:05:43 |Display all floors

there is still a long way to go

it is GDP PER CAPITA rather than aggregate GDP that reflects the national economic strength. Altough our great nation now ranks No 4 in the world in absolute GDP figures, there is still a long way to go before we truely become an "advanced" economy.
Now we are NO. 3 in the world in absolute GDP figures,if we can keep stable development and solve the
deteriorate gap between the wealthy and poor citizen,we can won even greater success!

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Post time 2007-9-28 21:16:53 |Display all floors
Originally posted by jimmy67 at 2007-1-12 09:00
Somebody said:   The Russian Reuble is on the rise. China's Yuan (RMB) is on the rise. The U.S. Dollar is on the Down-ward slide, and it will continue to slide until a gabage-bag full will only exc ...

It seems you don't know very much about international monetary policy.
If the U.S. dollar became as worthless as a garbage bag full for a loaf of bread that would be bad news for the people and countries holding the U.S. debt.
It won't happen for a long time, it doesn't make sense. This would damage the Chinese and a lot of other countries economies, possibly collapsing some economies.
And as zinc06 said below, there isn't a single country in the world that uses the RMB as a foreign reserve currency, it isn't convertable. The only places outside of mainland China that allow RMB deposits are here in Hong Kong and in Macau.
The RMB is still at far to early a stage in it's revaluation and development to become a foreign exchange currency. If the Hong Kong dollar was pegged to the RMB and it continued to rise over the next few years, it would screw up the Hong Kong economy big time.
Originally posted by zinc06 at 2007-1-12 14:18
"Many Asian Central Banks are using RMB as reserves"
Where does this information come from? RMB is not fully convertible. It is still too dangerous to use RMB as a forex reserve storage ...

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Post time 2007-10-9 11:43:25 |Display all floors

Reply #67 kelly888's post

Rmb is still far away from becoming a forex hard currency!

cheeerios!


Green Dragon

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Post time 2007-10-11 21:58:13 |Display all floors
I don't know if you've noticed that the euro is getting stonger and stronger every day.
The Euro is very stable and will soon be used by the largest common marked in the world.
EU(today) is larger than the US economy and still are there several countries that not has joined the EU.
Even with the former east block as members in EU it ranks very high in GDP/capita.
The economic growth in the east europe is very fast.

You could say that Europe beats the US in every thinkable way in economic terms.

Some people say the Iraq war was about the dollar. Saddam had some month earlier suggested that oil would now be traded in Euro.

Of course the US panicked.

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Post time 2007-10-12 11:29:03 |Display all floors

Reply #69 kimwang's post

Joe!

You must be sleeping!
Most of those value rises in currency is from Europe initially, then followed quickly by the British Club states and now the Far East and China!

Wake Up!

Green Dragon

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