The Chinese currency is increasingly attracting the attention of investors, especially after such strong fluctuations in the ruble against the dollar and the euro.
The exchange rate of the ruble to the Chinese currency in 2014 deviated from just five to seven percent. Therefore, the stability of this currency for the preservation of capital is much greater than the dollar or the euro.
The rate of the Chinese currency is from eight and a half to nine rubles for one yuan.
Denominated Chinese yuan as CNY.One yuan consists of ten jiao or one hundred fengs. In the thirties of the twentieth century, silver coins began to be produced. However, after the reform, silver coins were withdrawn from circulation and replaced with paper money. The binding to silver ceased, and the yuan was reoriented for gold. But the real supply of gold from the renminbi did not exist. As a consequence, within ten years the RMB rate fell more than a thousand times against the dollar.
At the end of the forties, anotherreform in China, and the authorities have established the gold content of the yuan. The dollar was worth four yuan. But after the devaluation at the end of the year, the dollar was set at twenty yuan.
Since 1994, the dollar rate has become worth eight yuan.And since 2005, China has decided to abandon dollar dependence. The rate began to be established on the basis of several currencies. It was believed that due to such actions, China's national currency will become more sensitive to world currency trends, and the financial system of the country as a whole will be strengthened.
As the global crisis of 2008 showed, the decision2005 was correct, and the Chinese currency suffered at that time less than some other currencies. The ratio of "Chinese currency to ruble" in mid-2008 was equal to three rubles forty kopecks. And by 2009, the yuan was worth five rubles.
From 2005 to the 2008 crisis, the Chinese currencyto the ruble and to all other currencies has strengthened by about a third. This is explained by the self-sufficient economy of China, a large percentage of exports, strict monitoring by the central bank of the yuan exchange rate, stabilization of the course in necessary situations. In addition, China, which is a buyer of energy resources, benefits from lower prices for energy resources.
The financial policy is furtherstrengthening the exchange rate of the national currency. Therefore, despite the strong fluctuations of freely convertible currencies, the yuan becomes one of the most reliable currencies for the storage of its savings.
In recent years, economic growth in China has decreased, so in 2015, we expect some weakening of the position of the Chinese national currency.
For example, the representative of the Singaporean bankbelieves that in the second half of 2015, the RMB exchange rate will decrease by two point three percent. At the same time, economists in Europe believe that by the middle of the year ten yuan will be equal to one dollar fifty-seven cents (currently ten yuan is equal to one dollar seventy cents). Representatives of HSBC testify that the central bank will hold two cuts in the key rate this year, which could weaken the yuan from three to four percent.
Analysts in Russia, on the contrary, believe that there are serious factors under which the ratio of the Chinese currency to the ruble will strengthen, and the yuan expects growth. It:
The main buyers of Chinese goods isUSA and South Korea. The purchasing power in these countries is increasing, and therefore additional exports from China can be sent to these countries.
As oil prices have significantly decreased, the country will save significant funds for the purchase of hydrocarbons.
In addition to oil indicators, China will be able to rely on favorable prices for natural resources, thanks to improved relations with Russia.
Because of these factors, Russiananalysts, the negative tendencies of the RMB weakening will be smoothed out. And, most likely, the Chinese currency will strengthen to the ruble, the dynamics of the development of the yuan will grow in 2015.
Therefore, they recommend investors and citizens,aiming to save money, to think about yuan. The Chinese currency is so tied to the ruble today that in Russia now in some banks there will be an opportunity to open a deposit in RMB.
