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Pegging Chinese Currency & The $US Dollar

Travel Forums Asia Pegging Chinese Currency & The $US Dollar

1. Posted by Wocca (Inactive 3745 posts) 11y

This issue has been simmering over the past couple of months in particular. If you plan to travel to China, then you may need to consider the money (currency) situation ....

WARN AGAINST CHINA SANCTION

Imposing punitive trade sanctions against China may slow the drive to persuade Beijing to adopt a more flexible currency and won't protect U.S. jobs, Federal Reserve Chairman Alan Greenspan and Treasury Secretary John Snow warned on Thursday.

Clearly worried that spiraling U.S. deficits were driving Congress toward trade action, Greenspan and Snow sought to tamp down the angry mood by pointing out the possible consequences for the United States.Both said China should loosen the peg it maintains for its yuan currency against the dollar, in its own interest and that of the global economy, but said it would be futile to try to force Beijing to do so through trade sanctions.

Reuters

2. Posted by Travel100 (Travel Guru 1556 posts) 11y

I always kind of liked that pegged yuan/dollar thing. When the dollar kept going down against the Euro and other currencies, therefore making trips for us to Europe more expensive , It's been nice to check the currency tables, month after month, year after year, and see a dollar will still get you 8.27 yuan. Might not be good for big businesses and trade balances, but I couldn't get too excited about watching it go to 8....7...6...etc..

I am glad they did away with those stupid "FEC" bills. I always wanted to use the same money as everyone else.

3. Posted by Wocca (Inactive 3745 posts) 11y

Good comments, Jeff ....

You were in China way before me. However in the past few years, I've only heard of FEC in Myanmar, which doesn't apply now

4. Posted by eefsf (Budding Member 6 posts) 11y

so if they do unpeg from the US dollar will that be good or bad for americans traveling in china?

the way i see it is that it would cost more for americans to travel there right? if so i better get packing before they do this stuff.

5. Posted by Travel100 (Travel Guru 1556 posts) 11y

Quoting rilzic

so if they do unpeg from the US dollar will that be good or bad for americans traveling in china?

the way i see it is that it would cost more for americans to travel there right? if so i better get packing before they do this stuff.

Exactly. Bad news for American travelers to China. The Dollar will be worth less in China, so everything will cost more.

Good excuse to go now!