Why is control of the renminbi controversial
This presentation is the property of its rightful owner.
Sponsored Links
1 / 10

Why is control of the renminbi controversial? PowerPoint PPT Presentation


  • 76 Views
  • Uploaded on
  • Presentation posted in: General

Why is control of the renminbi controversial?. Pei-ling liu Nilar thein Arturo Peguero. Outline. Current Situation Why RMB devaluated Conclusion. Current situation. 1 USD = 6.162 RMB. Current situation. Fluctuation History. EFFECTS OF CONTROL. POSITIVE EXPORTS UNEMPLOYMENT RATE

Download Presentation

Why is control of the renminbi controversial?

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Why is control of the renminbi controversial

Why is control of the renminbi controversial?

Pei-ling liu

Nilar thein

Arturo Peguero


Outline

Outline

  • Current Situation

  • Why RMB devaluated

  • Conclusion


Current situation

Current situation

  • 1 USD = 6.162 RMB


Current situation1

Current situation

  • Fluctuation History


Effects of control

EFFECTS OF CONTROL

POSITIVE

  • EXPORTS

  • UNEMPLOYMENT RATE

  • GROWTH RATE

  • NEGATIVE

  • INTERNATIONAL PRESSURES

  • NOT FOR DOMESTIC ECONOMY REFORM

  • RMB INTERNALIZATION

  • EXPECTATION


Source of controversy

Source of controversy

  • Forcefully keeping RMB undervalued

  • Countries argue it gives China an unfair advantage in exports against countries with free floating currencies

  • Unfair Increased competitiveness (Cheap) of Chinese products in international markets


Letting go

Letting go

  • Appreciation of RMB:

  • Good for domestic economy reform:

    • Domestic Consumption

    • Growth Rate

  • RMB internalization


Reasons to let go

REASONS TO LET GO

  • Economy reform

  • Stable society

  • Environment protection


Reasons to let go1

REASONS TO LET GO

  • Avoid Future Crashes

  • RMB Undervalued

    • Balassa-Samuelson Relationship (economic theory)


Why is control of the renminbi controversial

Thank you


  • Login