Chinese Yuan unpegged

benprotein

The Chinese yuan was unpegged from the USD last week after pressure from the U.S. and criticisms it was undervalued.

One reason it was pegged was to help the Chinese export market.

Does anyone have any idea where it might settle (or the Chinese government might let it settle)? This will effect the GBP exchange rate with the Chinese yuan also.

I live in China and am paid in GBP so the prevailing exchange rate affects my monthly budgeting directly.

MrTomato

It still isn't a completely floating exchange rate. There will be an article somewhere telling you possible fluctuations that China has allowed.

ChiefGrasscutter

Slightly OT:
When I worked in China (1980's) it was even more fun......
We had FEC the Foreign Exchange Certificates which is what we as foreigners had to use
The locals used RMB the domestic currency: now referred to as the yuan.
When you went in to a shop they wanted FEC (of course: FEC was highly valuable) not RMB (the local crap currency) ,but they gave you back your change in RMB.

So you ended up with a huge stock of RMB

Now when you came to leave China taking out your FEC was OK but taking out RMB was illegal - so you basically gave away your RMB notes etc to anyone of the locals you wanted to - just to get rid of it.

Can you imagine the fun I had in accounting for all of this in company expenses claims what with 2 parallel currencies variable rates of exchange between them and a huge bit missing at the end...........happy days: