Exchange Rate Now!

The People’s Bank of China Governor Zhou Xiaochuan said today that the Chinese Yuan might be “fine-tuned” to manage the after effect ripples from the global financial crisis which started in Oct 2008.

His comments raised eye-brows because it is not common for Chinese officials to comment on the valuation of the Renminbi as well as the fact that it had been some 18 months since the financial crisis stuck. Are such comments belated?

Regardless of the timeliness of his comments, forex traders would be interested to know the impact of forex market. Currently, 1 U.S. dollar = 6.826 Chinese yuan and it is very unclear whether the fine-tuning means the appreciation or depreciation of the Chinese Yuan (RMB). Most analyst expect the yuan to gradually appreciate over time, which several hedge funds expect to see more signs (more…)

There is little activity in the exchange rate/forex market between Afghan Afghani (AFN)/Chinese Yuan (RMB). Therefore, you might not get an accurate and real-time figure of the actual exchange rate today online.

How such low volume currencies are usually calculated might be used through the usage of a 3rd party currency, like the US Dollar or the Japanese Yen. Mathematically, the underlying formula for the AFN/RMB exchange rate equates to (AFN/USD)/(RMB/USD). Practically, it is also difficult for you to exchange either of the currencies (Afghan Afghani (AFN)/Chinese Yuan (RMB) near the actual currency bid-ask spread. Expect high commissions from exchange rate traders as well as equally volatile quotations. It is advisable for you to first trade against a major and globally. And by the way, if you are really looking to exchange/trade such a currency pair, you could really be a handful of people who travel to/from either countries. In summary, almost impossible to get the best exchange rate possible.

After the US invasion of Afghanistan, Afghanistan still maintains excellent (more…)

The RMB exchange rate seldom fluctuates against the US Dollar, which indirectly implies that the Chinese government tightly controls the value of the Chinese Yuan (also known as the Renmimbi, RMB). Therefore, there is no good time to really aim for the best exchange rate for RMB, with the RMB oscillating around a narrow band against the US Dollar. RMB/USD exchange rate hardly seems exciting for forex traders – this despite the very fact that in 2005, the RMB-to-US-dollar pegging system is being switched to a basket of foreign currencies rather than against just the US Dollar. 

With Chinese exports still steadily increasing despite concerns over quality, there is a fear that the Chinese Central Bank will continue to devalue the Renminbi to further drive Chinese exports. This possiblity cannot be ruled out, even through further depreciation of the Chinese Yuan/RMB is likely to be a series of minute downward adjustments.

At present, the global economy has just started resuming a growth trend after experiencing the worst financial crisis of the century. The prospects for a total revival still remains unclear, as uncertainties over the global financial markets have increased (more…)