China Economic Information
Central Bank: People's Bank of China (PBC or PBOC)
Currency: Chinese renminbi (RMB) or yuan (CNY)
With a strengthening currency and a growing importance in the world financial arena, the Chinese RMB attracts attention from many leading investors. While considered primarily an exporting nation, a growing middle class helps China move toward a robust consumer economy. A strong element of China's economic growth comes from foreign investments.
Key industries:
Mining and ore processing, iron, steel, aluminum, and other metals, coal, machine building, armaments, textiles and apparel, petroleum, cement, chemicals, fertilizers, consumer products, including footwear, toys, and electronics, food processing, transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft, telecommunications equipment, commercial space launch vehicles and satellites.
Agricultural products:
Rice, wheat, potatoes, corn, peanuts, tea, millet, barley, apples, cotton, oilseed, pork and fish.
Export commodities:
Machinery and equipment, plastics, optical and medical equipment, iron and steel.
Import commodities:
Machinery and equipment, oil and mineral fuels, plastics, optical and medical equipment, organic chemicals, iron and steel.
Historical foreign currency exchange rates
 Downward Trend |
 Upward Trend |
| Source: These exchange rates are interbank rates as published by Interactive Data as of 8/29/2010. These rates were not available to retail customers and were not the rates offered by EverBank. Past performance does not guarantee future results. |
A few factors to consider when evaluating the Chinese renminbi:
Reasons to consider
- In December 2009, China's manufacturing index posts its biggest growth since 2004.
- For the past 30 years, China has had the fastest growing economy with an average annual GDP growth rate above 10%. At present rates of growth, China's economy should double in size by 2020.
- Over the 10 years to 2008, China's exports grew by an annual average of 23% in dollar terms, more than twice as fast as world trade. If it continues to expand at this pace, China might grab around 1/4 of the world's export within 10 years.
- Projection by the IMF's World Economic Outlook implies that China's exports will account for 12% of world trade by 2014.
- Extraordinarily high saving and an undervalued exchange rate have fuelled rapid export-led growth and the world's biggest current-account surplus.
- China's property market was up in 2009. Prices of new apartments in Beijing and Shanghai leapt by 50-60% during 2009.
- Investments in roads, railways and the electricity grid will help China sustain its growth in the years ahead.
Risk factors to consider
- One demographic consequence of the "one child" policy is that China is now one of the most rapidly aging countries in the world.
- Deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table, is a long-term problem.
- China's exports fell by 17% in 2009.
- China accounts for almost half of American total deficit.
- Chinese citizen ranks number 133 in the world in terms of per-capita GDP. Tens of millions of Chinese still exist on less than a dollar a day.
How EverBank can help with your Chinese renminbi needs?
WorldCurrency® Access Deposit Account: Open a transactional money market account in the currency of your choice.
I'm interested in opening a WorldCurrency account, what is my next step?
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