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Euro v Yuan

  • 08-06-2010 9:47am
    #1
    Dudley Smith
    Registered Users, Registered Users 2 Posts: 41 ✭


    I have some money in Chinese yuan and have waited to transfer to Euro because of the yuan’s climb to a one-year high against the euro and it now stands at just over 8 yuan to the euro whereas last year this figure was nearer 10.

    Does anyone on here know will this trend continue and will China make adjustments to it's currency in the near future as exports get affected by the stronger yuan? I thank all in advance for any replies and recommendations for where I should be looking for information.


Comments

  • #2
    hoser expat
    Registered Users, Registered Users 2 Posts: 181 ✭✭hoser expat


    It is my understanding that the Yuan is roughly pegged to the $US, so as the Euro loses against the dollar it also loses against the Yuan. Might be wise to convert the Yuan to dollars instead of Euro.

    By the way, how do you have money in Yuan? I beleive the ability to hold the funsd outside of China are limited and the Yuan is not a fully convertable currency.


  • #3
    Wudyaquit
    Registered Users, Registered Users 2 Posts: 386 ✭✭Wudyaquit


    The chinese premier hinted at stopping restraining the currency when he was in the states earlier in the year, so it'd probably be a good currency to be in at the moment, but +1 for Hoser's question - you fill the pockets on a trip over there and have the mattress stuffed since?


  • #4
    Dudley Smith
    Registered Users, Registered Users 2 Posts: 41 ✭Dudley Smith


    Many thanks for your replies and as I understand it the EU countries (and the US) want China to devalue the yuan further from the present position of ~8 yuan to the Euro to ~5-6 yuan to the Euro so Chinese exports are more expensive? Where can you find information on this?
    Also can I ask what does "stopping restraining the currency" mean and that suggestion of exchanging to US dollars is an excellent one as I had not appreciated that the yuan and the US dollar were so closely linked. Why is that by the way? My wife is Chinese and has inherited money and through business we have money in the PRC as a result. Thanks in advance.


  • #5
    Wudyaquit
    Registered Users, Registered Users 2 Posts: 386 ✭✭Wudyaquit


    Dudley Smith wrote: »
    Also can I ask what does "stopping restraining the currency" mean and that suggestion of exchanging to US dollars is an excellent one as I had not appreciated that the yuan and the US dollar were so closely linked. Why is that by the way? My wife is Chinese and has inherited money and through business we have money in the PRC as a result. Thanks in advance.
    I think China pegs itself against a range of currencies now, but could be wrong on that. Keeping it's value down gives them a competitive advantage as Chinese products seem cheaper.
    I meant they're under pressure to allow the yuan to appreciate when I said "stopping restraining the currency" - if there were no currency controls the way there is in the west, the currency would be worth more.


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