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China's Currency
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TOPIC: China's Currency

China's Currency 5 years, 6 months ago #411

  • Kartik
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Why china's currency doesn't fluctuate against US dollars.

Re: China's Currency 5 years, 6 months ago #413

  • poojad
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It doesn't fluctuate because it is pegged by central bank of china...

Re: China's Currency 5 years, 6 months ago #414

What do you mean by pegged? Does it mean that it is fixed against US dollars? and why will china keep its currency fixed..

Re: China's Currency 5 years, 6 months ago #421

  • vidya_mba
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It is not exactly fixed by managed actively by China's central bank. Whenever yuan is appreciating, china's central banks steps in and starts buying more dollars from the market to ensure that yuan is not appreciating. They keep it fixed to have competitive edge in their exports in terms of cost..

Re: China's Currency 5 years, 6 months ago #427

  • mansin
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then why can't india also fix it to have competitive edge in exports...

Re: China's Currency 5 years, 6 months ago #430

if india has lot loans in US dollars. So if they fix the currency then then value of those loans may go up. Also our imports are more than exports. So if we depreciate our currency, our imports will also get expensive. Oil being the major part of the import..

Re: China's Currency 5 years, 5 months ago #434

  • poojad
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India also controls the value of ruppee. Its managed by RBI. If RBI see that rupee is sliding or gaining against USD, RBI steps in selling or buying USD in order to control the fluctuation. But unlike china, rbi only steps in when the fluctuation is beyond certain limit which is decided by rbi...
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