Revaluation of Chinese Yuan - Forex

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Revaluation of Chinese Yuan

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Background

U.S. government -Chinese trade surplus

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Why Yuan was undervalued

China export driven economy

Problem of unemployment

Weaker exchange rate increases demand

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Factor responsible for revaluation

Political factors

Pressure between

Governments

Rapid growth

Economical factors

Cheap Chinese manufacturing

Rapid growth of MNC’s setting up

manufacturing base

Impact on Chinese companies

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Impact on Chinese Companies

Chinese companies are primarily exporters - US being their biggest customer

Currency fluctuation

Negative trade balance

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what might a yuan revaluation mean for the world's markets?

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Winners And Losers From The Chinese Yuan

Revaluation

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Loser: China's Central Bank

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Loser: Chinese domestic commodity producers

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Loser: U.S. consumers

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Loser: Apple

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Loser: U.S. retailers dependent on Chinese suppliers

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Winner: Commodity exporters Down Under

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Winner: U.S. exporters, of course

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Winner: Chinese consumers

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Winner: Waves of Chinese tourists

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Winner: Oil

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Bibliography

1. www.ramakrishnavadlamudi.blogspot.com

2. http://www.businessinsider.com/moneygame

3. Chinese yuan revalued against dollar – Wikinews

4. The yuan and global imbalances – The Economist

5. http://economictimes.indiatimes.com/News/International-Business/articlelist/858478126.cms

6. The Economic Times – Yuan revaluation

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