Press Release Summary = Is now is the time to buy the Yuan? The Yuan traded at 7.9815 to the U.S. dollar on the over-the-counter market on Friday afternoon.
Press Release Body = FOR IMMEDIATE RELEASE 7/22/2006 Johanna Schipper http://www.asiantradehub.com
Asian Tradehub: China\'s Currency Hits New High. Should You Buy Yuans ?
China\'s economic growth surged 11.3 percent in the second quarter, its highest rate in a decade. As a result China\'s official exchange rate hit a new high against the U.S. dollar on Friday. Beijing has been urged by the US to cool its economic boom by nudging up the value of its currency. China\'s trade surplus hit a new monthly high against the U.S. dollar in June. Its global trade surplus tripled last year and Chinese experts say it is expected to top US$100 billion again this year. You have to realize that the value of the Yuan has been kept artificially low by China for political and economic reasons and it has only been with great reluctance that the Chinese have allowed the Yuan to increase in value. However, they can\'t stop the Yuan from increasing in value if economic growth keeps increasing at 11% per quarter.
So what are China\'s future prospects?
China is unique because of its size. China has more than 200 cities with a population of more than a million. While this is more than any other country, China today is still a country with a predominantly rural population. This population, however, is urbanizing and demanding all kinds of western conveniences, such as cars, TV\'s and appliances. This pent up demand will continue to boost the Chinese economy for at least the next 15 years. So while the mindset of Chinese officials is growth, lack of resources would stifle this growth. As a result China is buying the world\'s resources at an astonishing speed and at astonishing prices.
That means that there is going to be a scarcity of commodities, driving prices up including the Yuan.
Contact Johanna Schipper for more insights into this topic. Email: lazytrader44@yahoo.com Other helpful information regarding the event can be found at: http://www.asiantradehub.com.
For More Information Contact:
Johanna Schipper lazytrader44@yahoo.com http://www.asiantradehub.com
Web Site = http://www.asiantradehub.com
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