SB26 Posted December 24, 2012 Report Share Posted December 24, 2012 I'm choosing this for my econ ia in international economicshttp://edition.cnn.com/2012/11/05/opinion/hong-kong-postcard/index.html?iref=allsearch(please only read up to the first 6 paragraph)It talks about how china keeps it's currency artificially low (mainly by buying a lot of US dollar to make the value of US dollar > china's yuan) and all that, ,my question is that since the demand of US dollar is increasing due to China's act and it's appreciating, how come in paragraph 6 it mentioned US dollar weaken? The only reason i can think of is that demand of China's export in US increases due to it's low value and thus people sell US dollar to buy Yuan, thus making US dollar depreciates. However this contradicts with my previous saying about China making US dollar at a higher price than Yuan... I'm really confused and i don't know how should i explain it. Please give me some help, thank you very much!! Reply Link to post Share on other sites More sharing options...
wireman Posted December 24, 2012 Report Share Posted December 24, 2012 White House rivals share Hong Kongers' mistrust of China - Does the link lead to this article? Isn't it a bit too long? Reply Link to post Share on other sites More sharing options...
SB26 Posted December 24, 2012 Author Report Share Posted December 24, 2012 lol sorry i don't really understand what are you talking about, here's the link againhttp://edition.cnn.com/2012/11/05/opinion/hong-kong-postcard/index.html?iref=allsearchi'll jsut use the article up to the 11th paragraph so i think it's fine,,. Reply Link to post Share on other sites More sharing options...
wireman Posted December 24, 2012 Report Share Posted December 24, 2012 (edited) Can you do that? Can you only take a certain portion of an article and analyse it? I think you have to analyse the whole article. Confirm this with your teacher. Edited December 24, 2012 by wireman Reply Link to post Share on other sites More sharing options...
SB26 Posted December 24, 2012 Author Report Share Posted December 24, 2012 My teacher told me that as soon as i mark up till where i will use the article, then it's fine.. Anyways can someone please explain my question to me , thank you very much!! Reply Link to post Share on other sites More sharing options...
theboro76 Posted December 26, 2012 Report Share Posted December 26, 2012 This is my understanding of it (note I don't take economics or anything similar, this is just from generally related discussions with people.)So, in regards to paragraph 6, it is a hypothetical. Essentially, it is saying that IF the US dollar fall the Hong Kong Dollar falls also. This is because they are pegged. I.e. their currencies always stay in roughly the same ratio, relative to other currencies.The US dollar is weak however, at least in comparison the the Aussie Dollar. This is partly because of high unemployment and low debt, compared to us and also our ability to 'cash in' on the 'mining boom' to a bigger extent, at least per capita. However, The Use dollar is steady in comparison, not particularly rising or falling. Not sure about it compared to other currencies though, sorry. Reply Link to post Share on other sites More sharing options...
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