Thursday, July 21, 2005
Crap!
China no longer pegging currency to U.S. dollar
Well, seems I was right when I decided to plan a vacation to China this year. Part of my rational was that with the Chinese economy growing so fast, that an appreciation of their currency was inevitable. So, better beat the clock and get there while their currency was still pegged to the dollar at a rate of 8.28 to $1. Alas, China pull the peg this morning. Although it will limit variation in the Yaun to .3 percent per day, it still means my vacation will be more expensive.
(Theoretically, if the Yuan rises every day, the value of the dollar will be 30% less by the time of my vacation).
Oh well...I mean I am going to China...
http://www.msnbc.msn.com/id/8654171/
Well, seems I was right when I decided to plan a vacation to China this year. Part of my rational was that with the Chinese economy growing so fast, that an appreciation of their currency was inevitable. So, better beat the clock and get there while their currency was still pegged to the dollar at a rate of 8.28 to $1. Alas, China pull the peg this morning. Although it will limit variation in the Yaun to .3 percent per day, it still means my vacation will be more expensive.
(Theoretically, if the Yuan rises every day, the value of the dollar will be 30% less by the time of my vacation).
Oh well...I mean I am going to China...
http://www.msnbc.msn.com/id/8654171/
