Sunday, April 09, 2006

Should RMB be appreciated?

Recent days, much talking is around the world about the Chinese currency-RMB'appreciation. Europe and countries like America and Japan are pressing Chinese currency value to be higher. Most of the Chinese people are expect to see the currency appreciation. However, according to People's Daily, The appreciation of RMB will incur more disadvantages than advantages to the sustainable development of the Chinese economy, nor will it help improve the Japanese and American economies.

i)Chinese people will get less salary after the currency appreciation
ii)The Chinese products would be less competitive than the products from other Asian countries.
iii)Employment will be affected due to the more expensive human resources.
iv)Chinese currency appreciation will cause economy bubble and inflation in the long run.

Facing to these problems above, the Chinese currency value should better stayed the same.
Do you have any opinions about this topic?

No comments: