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Topic: news What You Need to Know About Transferring Money Overseas From China

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WCG
comment | 41588 | 0

China restricts the free trade of its currency in order to offset the imbalance that other central banks cause by loose monetary policies. The WTO has complained about China's methods of trying to control interest and exchange rates. But it's no different than what the FED or the ECB does. They just restrict trade instead of increasing or decreasing the supply of money. This is the reason for the quotas (500 USD daily limit) set on foreign currency exchange. China will never admit it, but there is a desire to suppress the value of the Chinese Yuan because China’s economy is dependent on offering the world cheap goods. China is mad at the USA for printing more money because now US exports are more competitive with Chinese exports. I think it’s LAUGHABLE that CCTV news complains about the USA’s policy and talks about moving away from the US dollar as the world’s reserve currency. As if the Chinese Yuan is a better option? Do you trust the Yuan, especially knowing that the Chinese government sets quotas on the amount of money you can trade? Can you imagine what it would be like if we based world trade on the Chinese Yuan? If they restrict the exchange of money, then this would be in effect, restricting the trade of goods. Nope! Not going to happen anytime soon. If China wants to make their Yuan more reputable, then they need to float it on the open market and stop the daily limits (quotas). There is a silver lining to living in China. The fact that China makes you convert your cash before sending it is actually very beneficial to you as a consumer. The exchange rate that most American banks will give you is usury.

Nov 26, 2013 23;42
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