Thursday, April 22, 2010

Potato or .... what is the right name for China's currency?


Renminbi is the name of China’s currency.

Yuan is the unit in which prices are measured.

This is similar to the distinction between sterling as the currency for the UK but prices are measured in pounds. There is nothing comparable in the EU, Japan or the US.

No matter wwhat the wording, there still has not been any change in the dollar peg. If there is no talk how is the global imblance problem going to change.

“There wasn’t any talk about the yuan,” Japanese Finance Minister Naoto Kan said. “I know everyone is interested. But it wasn’t discussed openly at the G7 or G20 probably because everyone there knew that China won’t like that very much.”

Interesting development in Taiwan.

The "renminbi shopping fad" has caused shortages of Chinese yuan banknotes in Taiwan, a development that prompted local banks to become reluctant to sell the currency renminbi, with some even implementing a "buying only, no selling" strategy.

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