Exchange Rate Now!

On 19th Aug, Chinese Yuan started trading against the Malaysian Ringgit, as declared by China Foreign Exchange Trading Centre (CFETC).

The move groups the Malaysian Ringgit within a privilege few which can trade direct against the Chinese Yuan (RMB), including both the US Dollar and the Euro. Currently, the Malaysian Ringgit trades against the Chinese RMB at 1 MYR = 2.161 Chinese Yuan (RMB). With the latest announcement by CFETC and as a consequence to limit any speculation, the Chinese Government stated that the yuan is now only allowed to trade up to five percent (up or down) against the ringgit from the central parity rate.

As the Yuan is the more dominant currency, the announcement brings more stability towards the Malaysian Ringgit with the soft pegging. The bodes will for the Malaysian Ringgit, exemplified by the fact that the Ringgit rose to a 13 year high against the US Dollar since the announcement by CFETC was made.

Speculators are now pursuing the Singapore Dollar as well (more…)

The entire currency market is reeling from the depression which rocked the eurozone. It is currently a challenge of relativity – which country can withstand this crisis and emerge stronger in the economic sense, and as a result have a stronger currency.

China, in particular, has emerged the strong winner. In recent months, China not only gave a fresh display of its economic and political muscle, but also exhibited the skills and sophistication on emerging from the crisis.

For example, China’s State Administration of Foreign Exchange clarified in May 2010 that Europe will continue as the key investment markets for China’s foreign-exchange reserves of nearly $2.5 trillion. This reserve is unrivaled even by the United States, and shows the long term vision of the Chinese in getting value for their investment and equally importantly, the confidence that Europe will be able to recover from the Eurozone crisis.

Currently, 1 Chinese Yuan (or Renminbi) trades at 0.1183 Euro, or 1 Euro = 8.453 Renminbi.

Hedge funds in particular, pays attention to the announcement by the Chinese government and would (more…)

For the longest time, the Chinese Renminbi had been pegged strongly against the US Dollar. Currently, the Chinese Renminbi trades at 1 US Dollar = 6.83 Renminbi, or 1 Euro = 9.21 Renminbi.

There had been much talk about the appreciation of the Chinese Yuan and news had certainly been heating up. Just on 16th Apr 2010, Chines President President Hu Jintao mentioned that China is on course to gradually introduce a managed, floating exchange-rate system. This to address pressure mounted on Beijing to let the yuan strengthen and calls by both America and Euro to stem a trade deficit against the China.

Domestically, the strengthening of the Yuan will however hurt export. A stronger yuan will squeeze the already thin profit margin of most Chinese export companies and make the products more expensive and therefore less competitive. Most economist predict that a 1 percent increase in the Chinese Yuan will lead to a corresponding decrease of up to 10% in Chinese exports (more…)