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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?
13 years 19 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...
