A Step Up For The Chinese Currency
Apparently lots of US firms are looking to make inroads into this country, and that has had an effect on the Chinese currency of late. Their currency is the renminbi, but it is commonly known as the yuan as this is a common denomination of the renminbi. The currency code symbol for the Chinese yuan is CNY when you are looking for it on the exchange rate tables.
One recent news story focused on the Blackstone company. This is an American company and it is one of several that could be moving in this direction. The story about Blackstone can be read at this URL at the Wall Street Journal website.
One thing you will notice about the Chinese currency when you compare it against the US dollar is that you have to go back a few decimal places to notice where the big changes are. Some currencies don’t require you to do this, but the value of the renminbi is such that it is necessary to look into it in more detail on your currency converter.
Obviously these latest events haven’t just come into being in the last couple of days. So let’s take a look at the exchange rates between the two currencies for the last month or so.
Back on the 10th July the US dollar was claiming 6.83281 against the Chinese currency. As the following week got underway, that dropped slightly to 6.83270. This is only a difference of 0.00011. But remember that we are dealing with small changes here as far as the decimal point is concerned.
We then saw a couple of larger movements – to 6.83289 on the next day and then back down to 6.83157 the day after that. The US dollar dropped further to 6.83128 before upping its game to end the week on 6.83172. This was still lower than it had achieved the previous week though, so the Chinese currency was certainly having the better time of things so far.
And events continued in that same vein as well. The US dollar only managed a closing exchange rate of 6.83059 on the 22nd July - falling back even further from the 6.83281 we started this report with. A renewed effort from the American currency saw it finish off the week with a rate of 6.83102, and in fact the following week was to be a better event than this one as far as the US was concerned.
It may have dropped down to 6.83090 on the 28th, but the very next day it climbed to 6.83139 and then managed 6.83227 just twenty four hours after that. It couldn’t quite close out the week on a sensational exchange rate, slipping a little to end on 6.83208, but at least the US dollar was doing a little better.
It wasn’t going to last though, as the US currency had an up and down week the following week. Eventually it ended up on 6.83178, but there was better news in store.
Perhaps surprisingly though the US was the one to take the upper hand as news of these new business plans came to light. You would have thought that the Chinese currency would be the one to succeed in improving its standing, given the fact that it will benefit from this arrangement.
But clearly this was not the case – at least not yet. Once the new week got underway the dollar surged ahead to finish on 6.83439. That is 0.00261 more than it had finished the previous week on – and quite a jump against this particular currency.
The next day it climbed higher to 6.83502 and then to 6.83507 on the Wednesday, but Thursday saw a small blip as the US dollar dropped back to an exchange rate of 6.83369.
So how will things develop with regard to the future, with these business plans in place for US companies to make progress in China? Which currency will benefit the most? Thus far it has been the US currency, even though that last minute drop could be telling. We shall have to see several more days or weeks of data to find out the true answer.
But either way, both countries should benefit from this new alliance. In what ways remains to be seen.