vendredi 7 octobre 2011

China: To understand the economy and the Chinese currency.

 
China, soon the largest economy of the world.

         "When China awakes, the world will tremble." Thus the writer and former Minister of Information of General Charles De Gaulle, Alain Peyrefitte in 1973 titled his book prescient, taking an apocryphal phrase attributed to Napoleon Bonaparte.
        
Not only the Middle Kingdom is awake, but she awakens sleeping continents like Africa that it brings with it while the old Europe and the United States face the greatest crisis in its economy for decades.
        
But the growth of its economy does not always rhyme with its opening to the world. And consumers of Chinese products do not even know the name of its currency.
        
This is both a weakness and communication at the same time clear evidence that the Chinese are very well adapted in all countries of the world as to manipulate their economies without resorting to their own currency.
        
The opposite of the Americans that everyone knows the dollar sometimes without ever having used one American product.
        
Other stable economies, it is also Switzerland which everyone knows well, the reputation bank, the Swiss Army knife, chocolate or watch without ever having seen the Swiss Franc
        
The Chinese currency, an enigma to consumers of Chinese products.
        
The yuan is the national currency of the People's Republic of China. Originally, it referred to as "Yuan Renminbi", abbreviated as "RMB", that is to say, "Yuan currency of the people."
         In everyday language, the yuan is also known as the kuai (Mandarin), a name that is used to separate units of subdivisions. This name is used only in official ceremonies. Its symbol is Latinized Y crossed twice or once.
        
The yuan is divided into 10 jiao (or mao 10) and 100 fen.
There are notes of 1,2,5,10,20,50 and 100 yuan notes 1,2,5 and Jiaosi Notes 1.2, and 5 fen.
        
Almost all the notes bear the portrait of Mao Zedong.
One yuan is worth 0.09 euro and 6.47 yuan equals 1 U.S. dollar since July 2011.
        
Bank notes include mentions in several languages: simplified Chinese writing pinyin romanization with no accent, Uighur, Mongolian, Tibetan, and Zhuang.

The bright future of the Yuan Renminbi.
        
         China started a process to sell its minority holdings in banks in Western banks, partly to strengthen their financial position but also to benefit from the technical experience of these banks and these alliances for access to their international network.
China has in its coffers significant exchange reserves (3.047 billion dollars).
        
Taiwan uses the New Taiwan dollar (TWD). Hong Kong, the Hong Kong dollar (HK $) and Macao also has its own currency (the pataca) connected to the Hong Kong dollar.

        
According to Dai Xianglong, the size of the Chinese economy now accounts for one tenth of the global economy, and foreign exchange reserves of the country accounts for one third of the world. China is also the largest creditor country in the world. "It is therefore inevitable that the currency of a country like China to become an international currency. This will be good not only for China but also for the international monetary system. "

        
In a decade when the Chinese economy represents 15% of the global economy and that the issuance of RMB will also count for 15% of the international reserve currency, the RMB will naturally become a real international reserve currency.
        
The yuan will be fully convertible in 2015 and 1916, China will be the world's largest economy with a GDP that exceeds that of the United States.
        
With an inexorable devaluation of the dollar which seriously impairs the bonds held by creditors of the United States, the world system could opt to replace the dollar with the yuan.

The Chinese banking system.

         The Yuan is issued by the People's Bank of China (Zhongguo renmin yínháng), the monetary authority of the People's Republic of China.
         Before 1995, two different currencies were used: the renminbi and foreign exchange currency (FEC). The FEC was exclusively intended for use by foreigners. Quasi-fixed parity (± 0.3%) with the dollar has long prevailed.
         July 21, 2005, she was replaced by an index to a currency basket containing the major currencies of the world (overwhelmingly the dollar) and the yuan was devalued by 2% compared to the dollar.
Bank of China (Bank of China) is the largest and most widely established in the territory. It has several branches in each city and branches in London and Geneva (Switzerland).
        
The Industrial and Commercial Bank of China (ICBC) has branches in almost every city. Other banks are poorly implemented, as the People's Bank of China, Agricultural Bank of China or the People's Bank of China Building.

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