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Thread: What if RMB depreciates?

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[quote=BARONTWANGLE,275488]Personally, I want to see the RMB decrease in value, but that is for selfish reasons (all my money is in UK £'s!).  Last December the exchange rate was 15.3, but recently it has been as low as 13.9.  That's a huge % difference, and makes a noticeable change every time I withdraw money from an ATM.  However, putting my own affairs aside, as China exports more than it imports, then surely by devaluing the RMB it is raising the relative price of its exports from the foreign buyers perspective.  The buyers use China purely because it is the cheapest place to get things developed and manufactured.  If that yuan strengthens, then the appeal is gone, and other developing countries such as India will be waiting in the wings to snatch the business.  I am not an economist, but I can't see the sense of devaluing the RMB, other than to satisfy the politicians of other envious countries.  The last thing China wants to be doing is trying to satisfy the US.  The favour will never be returned.[/quote]

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