Home > Exchange Rates, Trade > U.S., China Go Head-to-Head Over Currency Values

U.S., China Go Head-to-Head Over Currency Values

November 16, 2010 Leave a comment Go to comments

Below is a great clip from PBS Newshour (US indepenedent broadcaster) with Paul Solman. It explains very well how China accumulates and fixes its currency, the Renminbi*, to the US$. Basically at 9.15am the Peoples Bank of China (Central Bank) and the SAFE (State Administration for Foreign Exchange) issues a circular to all the trading banks stating that this is the exchange of the Renminbi to the US$ for today. When companies sell goods overseas the US$ etc that they acquire are then exchanged for Renminbi with the Central Bank – therefore the Central Bank accumulates significant amounts of US$. The site below has many more really good video clips

PBS Newshour – Making Sense with Paul Solman

*Renminbi, loosely translated as the people’s notes, is the official name of China’s currency. Yuan is the unit of account.

Categories: Exchange Rates, Trade Tags:
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Get every new post delivered to your Inbox.

Join 930 other followers

%d bloggers like this: