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Q: Is the ecomony going to collapse? If it does, what will happen to my money in my Chinese bank?
I know basically nothing about finance and macroeconomics, but the drops and the currency devaluation make me nervous.
8 years 37 weeks ago in Money & Banking - China
But the issue is that the CCP has maintained legitimacy by saying Look at the Economic Growth...should Economic growth return to a world normal 1 or 2% the common people will be upset.
Good question. I don't know why you got a couple of down votes, I assume it's those stupid little wumao toads again.
I don't know the answer to your question but I guess a lot of people here are wondering the same thing. I probably know even less than you about this but from what I've read, the economy is in no danger of collapsing in the near future, it's still growing in fact, just at a slower rate.
I would still send my money home though, who knows if the exchange rate will drop tomorrow.
Currency is kind of pegged...I can't see it going below 6 to the dollar, without the WTO throwing China out...
icnif77:
You mean 'above' 1 US$ : 6 Rmb. Some projections are on possibility of 1 :8 by the end of 2016.
No
the Chinese economy will not collapse.
some pretty goofy people doing some pretty goofy stuff right now (CCP, uninformed investors, Saudi's, oil in general) for some, it is panic and ignorance, for some rich it is a fun game to gamble with.
Your money will be fine in a Chinese bank (as long as it is not in Ho Li Fuk's local corner investment bank.)
Reforms and globalization will take years and years, but it will be good for all, in the end. (is there an end?- no) Stabilize before year's end.
I do think the RMB has to devalue some more, even if it pisses Trump off.
Some people have predicted a China collapse for the past 20 or 30 years. Some folks have predicted a U.S.A. collapse for even longer. Neither will collapse. China will work through this difficult time. They might make some mistakes, but eventually, all will be well.
Meanwhile, you could hedge your renminbi by converting half of your savings to dollars, or pounds, or whatever currency you prefer. The renminbi may very well be devalued, but if you keep half your money in another currency, you reduce the effect on your wealth.
But the issue is that the CCP has maintained legitimacy by saying Look at the Economic Growth...should Economic growth return to a world normal 1 or 2% the common people will be upset.
Economy will not collapse.
But, if you have cash, best moment to change it to your currency has already gone.
I also expect a bit more devaluation on the RMB, but not much more than what they did already.
From my side, with lowering interest rates and considering how much the RMB appreciated in the last 2 years, in May I changed back to Euro 90% of my cash here, at a good 6.65 rate.
Shining_brow:
Unless home is Australia - cos the AUD is still crap :(
And, as I write this, I check XE.com,, and find the dollar has dropped even further!!! 4.39 now... down from 4.45 yesterday.
If you are planning on leaving China soon then you will lose money exchanging it bit if you plan on staying in China for a long time you should be fine. The government will never let the economy fail as that would be the end of their life of luxury. They would do litterally anything to keep in power so there is no need to worry.
