How will the china currency valuation affect US tourist? Should I buy another currency and exchange to Yuan?
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June 27th, 2011
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Question by Robert: How will the china currency valuation influence US tourist? Ought to I buy another currency and exchange to Yuan?
Best answer:
Answer by Goupidan
You ought to exchange your USD into CNY just before the G20 meeting. The RMB is going to go up.
Know greater? Leave your own answer in the comments!
Jun 27th, 2011 at 9:49 pm
The Chiinese yuan ceased its 2 year peg to the dollar yesterday (June 21). The yuan will be allowed to change a small amount in value daily, but those small changes will add up to large valuation movements over the course of a few months. Yesterday the yuan opened at 6.83 to the US dollar and closed at 6.79.
Swapping U.S. dollars for another currency and then exchanging for yuan is pointless. The yuan is rising against ALL currencies. The yuan has been held back from doing this for 2 years by the Chinese government in an effort to maintain stability during the global financial crisis.
The yuan is on a one-way trip relative the the world’s other currencies. The U.S. dollar, Euro, and Japanese yen are all going to lose value tremendously against the yuan. Within a few years the U.S. dollar may lose 50%, 70%, or even 90% of its purchasing power. The people of the United States will experience price inflation on an unimaginable scale. The U.S. dollar will eventually be almost worthless in international transactions.
Take your vacation soon because you won’t be able to afford visiting China in 2 or 3 years.