Exchange Rate Now!

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…)

The Hong Kong Dollar (HKD, HK$, “Hongkers” – informal name) is pegged to the US Dollar (USD). The initial conversion rate was 5.085 Hong Kong Dollar to 1 US Dollar in 1972 but the H.K. Dollar has since been floated to a current band of exchange rate between 7.75 HKD/ 7.85 HKD = 1 US Dollar. This represents a maximum variance of 1.29%.

To the average tourist between United States and Hong Kong – there is hardly any need to forecast the trend of US Dollar/Hong Kong Dollar exchange rate. You can simply convert either of the currency just the day before you travel, and rest assured that it will not matter materially if you had converted your currency 6 months ago or even earlier. This bode well for Hong Kongers studying in the United States, as a stable peg of Hong Kong Dollar means that it is easy to forecast and budget your study expenses. Similarly, Hong Kongers working in the United States will not be exposed to the currency fluctuations that can relatively reduce your pay against a basket of foreign currencies.

There is no fear that speculative trading will destabilise the trading band of the Hong Kong Dollar compared to the US Dollar (more…)

Besides United Kingdom, Switzerland is another country that has yet to jump onto the Euro bandwagon. Swiss Franc (CHF) is the currency used  Switzerland and there has been no signals from the Swiss government that they will adopt the Euro anytime soon.

Due to the unique status of Switzerland as a banking haven as well as a self-designated “neutral” country during war times, Swiss Banks are the magnet for storage of investments from wealthy individuals (and sometimes crimimals) all over the world. These people park their investments as gold (stored in gold vaults), in foreign currencies (in Swiss Banks) or simply leave it to investment firms to manage their finances in whatever manner is deemed fit.

Swiss Franc, as a result of Switzerland’s financial stability and reputation, remains one of the most traded currency in the world, ranked 5th, just behind the US Dollar (USD), Euro (EUR), Japanese Yen (JPY) and the Sterling Pound (GBP).

Currently, 1 Swiss franc trades at 0.658 Euros, which has stabilised since the spike in Mar 2009 (between 0.65 and 0.68 within 1 week!) (more…)