Foreign Currency war,who will be the winner?

CNY Appreciation: the influence on China.

2012-02-12T04:36:00.000-08:00

China has adjusted her monetary policy on pegging to USD only since China joined the WTO.She bought out a package of monetary policy,establishing of the CNY exchange rate formation mechanism based on the market demand. These years along with the CNY appreciation,it influence China a lot . China is a import and export trade power,import and export trarde origin of GDP 21%,thus the CNY Appreciation has the biggest influence on china.China's major export industries of textiles, clothing, chemicals, electronics and machinery manufacturing. There are differences due to the export price elasticity of different appreciation of the renminbi to the adverse effects of different industries export .The profits of Chinese Industries will go down rapidly.As a whole, as china export industries is mainly on the processing trade, the raw material of import proportion is very high.so CNY appreciation makes the final product price competitiveness weakened, but be able to buy more raw materials and intermediate products is limited, so the impact of CNY appreciation on export competitiveness. The impact of CNY appreciation on China's trade to effectively regulate the development of China's industrial structure, the appreciation of the CNY ,the imports of the international prices of raw materials to reduce the effective development to the expansion of domestic demand-oriented economic strategy of sustainable development at the same time, due to appreciation of the yuan, to reduce China's export competitiveness of their products processing-based, labor-intensive economy is mainly dependent on cheap power is undoubtedly a challenge.CNY appreciation can reduce china trade surplus, improving China's international balance of payments imbalance

Lessons learned from the Asian financial crisis----china

2012-02-02T18:09:00.000-08:00

southeast Asia finance

The financial crisis happened on the June ,new york giants

1997 in Asia has a lot of complexes and influences, which can set into three parts :June-July/1997,Jan.---July/1998 and the end of July /1998

The first stage: Thailand is out of expections to announce that she would use floating exchange rate instead of the fixed exchange rate..It is this event that gave rise to Asia financial crisis .on that day, the Tai baht against US dollars exchange rate went down to 17%,and disorder in the foreign exchange rate. with the influence of the Tai baht, the international exchange arbitrage begin to attack the Philippins ,Indonesia and Malaysia . Later , gradually it became financial crisis .new york giants

The second stage: On Jan,1998,Indonesia come up with another financial crisis Facing with the worst economic reccesion ,the solutions given by IMF for Indonesia made no effect. Indonesian government declared the she will implement linked exchange rate system ,which made many countries against for it .

The third stage : Hong Kong exchange rate market is under attack again . Hang Seng index went down to 6000.. Hong Kong government took measures to prevent this .however the financial crisis spread to Russia It demonstrated that the Asia financial crisis is not regional but global.

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90's can be regarded as the financial globalization era .Despite that china survived from the financial crisis ,but she can learned lessons.

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1,Alert to the occurrence of the bubble economy, the timely processing of bad debt problem

2.Adhere to the principle of full liberalization of the financial

3.Accelerate the pace of adjustment of industrial results

Facing with the Western pressure,where would the China go from here?

2012-01-29T18:41:00.000-08:00

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Now the year 2007 has been past away,the world experienced the sub-prime mortgage loan crisis. With the next year coming along ,it happened many shocked issue .From the view of out of china,it occurred from Iraq war shift to EU economy Crisis .also there is a big problem that china faced with the real estate bubble.So far,the Western place the pressure on China about Chinese Yuan appreciation and trade protectionism that the western thought. With these issues ,where would China go from here?

new york giantsAs having excessive liquidity, investment ,surplus and having increasing inflation,Chinese currency policy has little operation of space.China will take great risks in making a bit loss. Known that China economy depends on the export ,the western especially US has been taking protectionism on high technology Industry .thus china enterprises need more support from goverrment .The weak western economy now has been indirectly affected China.where would china go from here ?

China current policy is emphasis on anti-inflation.currency policy is not agreed with all.Many western countries ,including Great Brain and US,got through the economy crisis via currency policy.otherwise,the devoloping countries's currency policy is placing much emphasis on anti-inflation .

However ,the measure of the currency policy such ae hedge liquidity and strengthen credit control and so on could not deal with the imbalance of economy . It should be reliable on the finance,industry and trade and expanded the domestic demand.

Hot money will not evacuate from china ------ in short period.

2012-01-21T00:21:00.000-08:00

People in china discussed with hot money rushing into China. Most of them is so worried that once the hot money evacuate from China it will make china Economy loss. As with the china economic growth weakened,Chinese yuan appreciation still exists and inflation situation is grim, real estate markets adjusts,the measures that how to prevent the hot money that rushed into china arise the home capital markets changes becomes important of aspects of china economy growth. Some experts in China think that Hot money will not evacuate from china in short period.they point out that there is 500 billion hot money in current china dollar reserve .the inflowed hot money is bigger than that flowing out .NFL jerseys From the aspects of Chinese situation ,the hot money will not evacuate from china in short period no matter how big the hot money scale is . The reason may be as follows :1. The Chinese yuan appreciation still have a strong trends .it can go on benefiting from the appreciation .2. China still is in the period of rising the interest rate,foreign interest rate spread stays the same or even widen .3 china stock market crash ,but china ecomony situation have not been changed .4.the price of real estate goes down ,but great profits still be there . In short period ,the hot money will not evacuate from china .hot money enters into china result in china short-term foreign debt accounted for 60%,foreign reserves will make a loss .However,in Asia financial crisis ,the high proportion of short-term foreign debt and low proportion of foreign reserve is the main reason why those Asia countries why could not deal with the currency crisis .so people may be concerned that too much foreign debt will occur new currency in china.NFL jerseys

Where Iran go from here now?

2012-01-20T06:13:00.000-08:00

NFL jerseysWith the international situation rapidly changes,Iran' s nuclear issues becomes more and more concentrated globally. Is nuclear proliferation so serious? The answer is "probably".Recently we've have heard that Iran is banned by selling crude oil in the international markets. As US's allay,Europeans countries,and some Asian ones ,include south Korean and Japan nearly agreed with that.thus where Iran go from here now? Iran has a turbulent history in its just recent past. From a democracy in 1950s,it seems have moved backwards,from an authoritarian regime (backed by Great Britain and the US) that overthrew the democratic one, to a religious fundamentalist regime toppling the authoritarian one and taking an anti-US stance. The united states ended its supports for Iran after brutal war against its 1 million people die and instead supported Iraq.The fore United states president George Bush claimed the Iran as axis of evil!! The US is against Iran developing nuclear weapon while Iran insist that she is only pursuing peaceful development of nuclear.no one knows that but Iran.Many may afraid that the lasted biggest war in 2012 may happened in the Middle East Area------Iran and US.Oil embargo may be the first step for the US preparation for Iran war .what on earth oil embargo and Iran war will benefit the world? As we know ,crude oil is regarded as the rice of industry .since the world financial crisis in 2010,the world's economy ran into slow recovery from the economic recession .every countries in the world is endenvored to development its economic.So in my part ,i don't agree with the oil embargo.if that ,the level goods price in the international markets will go up rapidly and the economic will decrease. Thus ,please think twice .NFL jerseys

Foreign Currency war,who will be the winner?

2012-01-20T06:10:00.000-08:00

Written by Crouse Brunch
The year 2007 is a wonderful year that china economy boosts increasingly-------stock markets and real estate got hotter and hotter. Those who suck in the capital markets gets much bonus .at that time, the people from home and abroad doubt if china economy will land stably .At the same time ,the Chinese main currency is under great pressure .on one hand ,its currency rate is nonstop increased ,on the other hand ,decrease on Euro. When confrontation between the two party gets into three,this long foreign currency war becomes more and more complex:the US dollar would have no choice to get out of the main role of main international currency.however ,the vibrant Chinese yuan still stays here,hold on weakness.thus Euro is forced to be No.1 international currency but cannot afford to the weight of currency due to the EU market's weak economic increase. In fact ,the war among US dollar ,Euro and Chinese yuan is a kinda that US ,EU,and China don't want to play the important role on foreign currency markets . Along with the US dollar devaluation , the global economy begins foreign currency rate .strong esteem US goverment request Chinese yuan to appreciation.Chinese goverment is under great pressure .but EU pros that US dolllar devaluate too much. So some people mayt reach a conclusion that the world is filled with protectionism: Foreign currency war ,who will be the biggest winner ? Facing the great international pressure ,China take its own measures .that is ,roundabout appreciation .nowadays ,the chinese foreign currency policy is towards flexible transitional phrase.. the few decades of bilateral trade demonstrate that the two parties benefit much more than we thought . We should notice the deep root reason why Euro increase devaluating .global imbalance of payments is the root cause . NFL jerseys