Foreign Exchange Policy of China – Updated in 2010

In foreign exchange market, foreign exchange policy is very good tool to stabilize the currency exchange rate. In any country currency exchange rate stabilization is possible only when central bank has right to stabilize it. If any country government gives the power to central bank to create reserve of foreign currency and supply according to demand of foreign currency, then that country’s currency may stabilize in foreign market.

If we talk about China’s foreign exchange policy 2010, its aim is also to strength his country’s currency in world market. China’s central bank has foreign exchange reserve of 2500 billion dollars in 2010. This policy has raised china in foreign exchange market.

Chinese current account surplus is more than 8 percent of its GDP. While the U.S. current account deficit, which is only 2.9 percent of GDP. This is reason that USA has to be devalued its currency. This way it is cheaper to export to USA by China while the U.S. has to pay high for import from China. USA blames on China that it own currency 'Yuan' is placed on the stabilization policy and it is the growing imbalances in the global economy.

From Mid-July 1997 to 2005 China’s foreign exchange policy was continued on the way of stabilization. July 21, 2005, China abolished the policy of stabilization and made his own Yuan stable in world foreign exchange market. It did devaluated Yuan more than 20%. China again began a policy of stabilization from July 2008. Based on the 6.82 per dollar today Yuan has been stable.

Tim Geithner U.S. Treasury Secretary recommended that China should adopt flexible currency policy, which is balanced and beneficial for the global economy as well. Today around, 10 percent unemployment is in the U.S. The reason Obama is also under pressure from congress.

U.S. policy makers are worried the least evaluation of Yuan. That aside, China's exporters are getting unfair advantage in global markets and on the other hand, it is adversely affecting employment in the U.S. Today, China’s foreign exchange policy is being condemned, while China has no regret. China does not matter this as financial irregularity.

According to Irwin University of California economists Greg Lindane, Kenneth and Jason Dederiq

"For making every Apple iPod costs 150 dollars, including VAT fraction of China's four dollars. But when the iPod is imported from China, then its value is determined as 150 dollars. In other words we can say that the U.S. trade deficit is growing by the artificial."






access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar Control Your Spending corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Finance Journal Entries Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps Google Adsense google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Journal Entries eBook Help Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents Partnership pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching Wealth wikipedia working capital youtube
Accounting Education: Foreign Exchange Policy of China – Updated in 2010
Foreign Exchange Policy of China – Updated in 2010
Accounting Education
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock