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Q: How much should the RMB be really worth?
I exchanged some money for the first time in a while the other day and was surprised to say that the yuan has appreciated a bit on the us dollar.
This got me thinking, how much should RMB really be worth if it weren't for the government controls on currency?
11 years 2 weeks ago in Money & Banking - China
"That undervaluation of the renminbi acts as a subsidy for Chinese exports, artificially making them as much as 40 percent cheaper when sold in the U.S. Conversely, it acts as a tax of as much as 40 percent on American-made goods sold in China."
From: http://economyincrisis.org/content/chinas-currency-manipulation-flipping...
(Excluding currency conversion fees)
What it was 2 years ago: 1 USD = 6.5 Yuan.
What it is now: 1 USD = 6.19 Yuan
What it should be: 1 USD = 3.71 Yuan.
So a 100 RMB note should cost you $27 USD if it wasn't for China's currency manipulation.
RMB is stable , thus I exchanged all of my bucks to RMB...
