Thursday, March 11, 2010

RMB might rise...

BEIJING (AP) -- China's exports rose in February in a new sign of growing global demand that could help persuade officials to let the Chinese currency rise.

Exports were up 45.7 percent over a year earlier, the Chinese customs agency reported Wednesday, beating analyst forecasts of 35 to 40 percent growth. Imports surged 44.7 percent, the agency said, reflecting growing demand in China as it emerges from the global crisis.

"China's trade is extending its recovery," said Zhu Jianfang, an economist for Citic Securities in Beijing. "Exporters are getting more orders these days."

February's growth rate was boosted by comparison with last year's weak trade amid the global downturn and came despite the weeklong Lunar New Year holiday, when many companies shut down.

Zhu said the data increase chances the government might allow China's currency, the yuan, to rise in value.Beijing has held the yuan steady against the dollar for 18 months to help Chinese exporters but is under pressure from Washington and other trading partners that say it is undervalued and is swelling China's trade surplus.

I won't close my RMB account after all. Now, if China were to allow its currency to appreciate, there could very well be a corresponding appreciation by Taiwan and others. So, if you have any Taiwan dollar accounts or don't need to convert your money to USD or CAD right away, it might be smart to wait. Maybe in 6 months, the RMB will appreciate by a large amount and then the TWD would as well as many countries that compete with China have been keeping their currency weak to match China.

1 comment:

火鍋 said...

此處是值得一探究竟的好部落格!! ........................................