2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Chinese currency is increasingly attracting the attention of investors, especially after such strong fluctuations of the ruble against the dollar and the euro.
The exchange rate of the ruble against the Chinese currency during 2014 deviated from only five to seven percent. Therefore, the stability of this currency for capital preservation is much greater than the dollar or the euro.
What is the Chinese currency? Chinese currency against ruble
The exchange rate of the Chinese currency is from eight and a half to nine rubles for one yuan.
Denoted by the Chinese yuan as CNY. One yuan is made up of ten jiao or one hundred fen. In the thirties of the twentieth century, silver coins began to be issued. However, after the reform, silver coins were withdrawn from circulation and replaced with paper money. The peg to silver has ceased, and the yuan has been reoriented to gold. But the yuan never had a real backing of gold. As a result, within ten years, the yuan has fallen by more than a thousandtimes against the dollar.
At the end of the forties, another reform was carried out in China, and the authorities established the gold content of the yuan. A dollar was worth four yuan. But after the devaluation at the end of the year, the dollar settled at twenty yuan.
Since 1994, the dollar has become worth eight yuan. And since 2005, China has decided to abandon dollar dependence. The course began to be established on the basis of several currencies. It was believed that thanks to such actions, the national currency of China will become more sensitive to world currency trends, and the financial system of the country as a whole will strengthen.
As the global crisis of 2008 showed, the decision of 2005 was correct, and the Chinese currency suffered less than some other currencies at that time. The ratio of "Chinese currency to the ruble" in the middle of 2008 was equal to three rubles forty kopecks. And by 2009, the yuan was already worth five rubles.
RMB savings
From 2005 to the crisis of 2008, the Chinese currency strengthened by about a third against the ruble and against all other currencies. This is due to China's self-sufficient economy, a large percentage of exports, strict monitoring of the yuan exchange rate by the central bank, and stabilization of the exchange rate in necessary situations. In addition, as a buyer of energy resources, China benefits from lower energy prices.
Financial policy is further designed to strengthen the national currency. Therefore, despite the strong fluctuations of freely convertible currencies, the yuan is becoming one of the most reliablecurrencies to store their savings.
Forecasts of foreign experts
In recent years, economic growth in China has decreased, so in 2015 the position of the Chinese national currency is expected to weaken slightly.
For example, a representative of a Singapore bank believes that in the second half of 2015 the yuan will fall by two point three percent. At the same time, economists in Europe believe that by the middle of the year, ten yuan will be equal to one dollar and fifty-seven cents (currently, ten yuan is equal to one dollar and seventy cents). Representatives of HSBC say that the central bank will carry out two key rate cuts this year, which could weaken the yuan by three to four percent.
Forecasts of Russian analysts
Analysts in Russia, on the contrary, believe that there are serious factors in which the ratio of the Chinese currency to the ruble will strengthen, and the yuan is expected to rise. This is:
- The main buyers of Chinese goods are the US and South Korea. Purchasing power in these countries is increasing, and therefore additional exports from China may be sent to these countries.
- Because oil prices have fallen significantly, the country will save heavily on the purchase of hydrocarbons.
- In addition to oil performance, China will be able to count on favorable prices for natural resources due to improved relations with Russia.
Because of these factors, Russiananalysts, negative trends in the weakening of the yuan will smooth out. And, most likely, the Chinese currency will strengthen against the ruble, the dynamics of the yuan will grow in 2015.
Therefore, they recommend investors and citizens with the goal of saving money to think about the yuan. The Chinese currency is so tied to the ruble today that in Russia now some banks will be able to open a deposit in yuan.
Recommended:
Chinese auto industry: novelties and lineup of Chinese cars. Overview of the Chinese Automotive Industry
Recently, China has been the leader in the global automotive industry. What is the secret of the success of the Chinese state in this difficult segment for the modern market?
The currency of India: name, exchange rate against the ruble
The material below will enable readers to get acquainted with this monetary unit, its history, appearance and other characteristics
Chinese money. Chinese money: names. Chinese money: photo
China continues its active growth amid the crisis of Western economies. Perhaps the secret of China's economic stability in the national currency?
Currency of the Philippines: history, exchange rate against the ruble and the dollar, exchange
The article discusses the currency of the Philippines. It contains a brief historical overview, provides data on the exchange rate, contains information on where and how you can exchange the Philippine peso for the money of other countries
RMB currency - Chinese people's money
Unlike most countries in the People's Republic of China, the name of the currency and currency are different. The yuan is a measure of the renminbi, often translated as "the people's money". Because of this, there is also a difference in abbreviation: in the international classifier, the Chinese currency is assigned the designation CNY, and the Chinese themselves use the abbreviation RMB from the word "renminbi"
