Will Renminbi ever devalue?
Due to the differences in cost of production, lots of investor chose to invest their money in China rather than their own country.This make lots of people lost their job because Chinese worker causes less spending and are able to do as good work as anyother foreign worker like American or Indian, this will decreases the price of production and provide more profit to the business. A rapid increasing of invester investing in China make Chinese government wanted to keep their currency in an optimum value to attract more investor while the other currency are kept changing according to the current economic situation.In order to keep their economic the same, with no decreasing in profit, China refuse to devalue it's currency
In my opinion, I consider that the Renminbi will maintain it's strength against US Dollar. The economic of China is getting better with the higher rate of GDP and also increase the rate of investment in China. Infact, with the growth of economic plus the QE2 issued from the Federal Reserve of the United State,it could force the US Dollar to be devalue against Renminbi further in the future. However, if China doesn't want it's currency to be revalue, it could sanction the rate of Renminbi in the money market to maintain at the same level of the exchange rate against US Dollar.
Cited from: http://www.dallasnews.com/sharedcontent/dws/bus/columnists/chall/stories/DN-Hallonline_10bus.State.Edition1.3d7e691.html
http://www.risk.net/asia-risk/news/1563630/renminbi-replacing-us-dollar-trade-currency
Further question : How does "QE2 (Quantitative Easing)" works?
You still have issues with clarity, but overall ok. 9.5
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