July, 2005

People's Bank of China Announcement on 7/21/2005 - Current Exchange Rate 1USD = 8.111 yuan; Was 1USD = 8.277 yuan

The People's Bank of China, China's central bank, announced Thursday that the exchange rate of US dollars to RMB is changed to one dollar to 8.11 yuan from 19:00 Thursday, July 21 2005.

Download the official public announcement of the People's Bank of China on Reforming the RMB Exchange Rate Regime (Word file format, PDF format)

BusinessWeek - The Yuan and You

What effect will China's currency shift have on U.S. investors? Maybe not very much at all, says S&P.

The revaluation is also likely to improve the competitiveness of U.S. goods in U.S. markets against more expensive Chinese goods (if the U.S. still produces goods that are in direct competition with their Chinese counterparts, that is). On the other hand, Chinese suppliers may decide to reduce the nominal cost of the exported items to offset the effect of the stronger yuan...

Read the full article here...

Forbes - China's Currency Rises Against Dollar

The yuan closed at 8.1111 to the U.S. dollar on the country's foreign-currency exchange in Shanghai, down ever so slightly from the new opening rate of 8.11. The new closing price was still considerably stronger than the former state-set rate of 8.277 to the dollar - in place for a decade - that the government dropped on Thursday when it switched to a more flexible system based on a basket of foreign currencies...

Read the full article at http://www.forbes.com/associatedpress/feeds/ap/2005/07/22/ap2152236.html

China Second-quarter GDP is expected to "moderate" to 9%

How do you say "Goldilocks" in Mandarin? China's second-quarter gross domestic product report, expected this week, is forecast to show 9% year-over-year growth, a rate not usually associated with a not-too-hot and not-too-cold economy. But it does show that the Chinese economic juggernaut is beginning to pull back from a 9.4% year-over-year growth in the first quarter, and 9.5% annual growth in 2003-04.

Read the full article here...

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