I had been in the habit of multiplying by 6.3 to get RMB from US$. Clearly, those days are long gone.
The value of the RMB hit a record of 6.2155 to the US$ last week. The South China Morning Post had a good article on that you can see here.
It is not a big movement but a reminder of the future. The RMB will go yet higher in the year to come and in the decade to come.
As China rebounds from last year’s industrial slump, inflationary pressure will return and more small movement on the RMB should be seen.
While the Chinese manufacturing base is great and still growing, the market is the big future event. The further good news for selling to China is the value of the currency must continue to rise with the rise of the Chinese economy. Finally, the Chinese government is committed to make the rise gradual to avoid sudden shocks.
Do take a look at the South China Morning Post, Honk Kong’s premiere Daily English language newspaper.