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Forex Fundamentals of Country Profiles 10 - China

{}Posted in2023/2/25 5:51:46 | 6Browse

Welcome to forexrebates! If your knowledge of Ch cashbackforexexnessa forexcashrebate limited to it being the most populous country in the world Forex rebate for Exness the Great Wall, then you need to read on China has been a unified country since 221 BC, ruled by the Qin However at ForexrebateforExness time the big fat panda was not yet a kung fu master, at least we dont think it was Since then many dynasties have emerged in succession until 1949 when the Peoples Republic of China was founded Until recently, China has emerged as a world In addition to being the home of Yao Ming, China is also the third country to send astronauts into space From sports to space travel to economic power, China is slowly improving its position in the rankings China: Facts, Figures, and Characteristics Neighbors: South Korea, North Korea, Mongolia, India, Japan, Russia Area: 9.6 million square kilometers Population: 1,000,000 million square kilometers Population: 1,347,350,000 Population density: 363.3 people per square kilometer Capital: Beijing (population 11,716,000) Head of government: Hu Jintao Currency: RMB/yuan (CNY) Major imports: oil, copper, iron, machinery, plastics, medical equipment, organic chemical materials Major exports: rice, accessories, clothing, office supplies, electronics machinery, steel, Yao Ming, Jackie Chan, Apple tablet, Chery car Import partners: Japan 12.7%, South Korea 9.9%, U.S. 7.3%, Germany 5.3%, Australia 4.37% Export partners: U.S. 18.0%, Japan 7.7%, South Korea 4.4%, Germany 4.3%, Netherlands 3.2% Time zones: East 8, East 7, East 6, East 5, East 4 Website., China overtook Japan to become the worlds second largest economy By 2011, Chinas GDP reached $7 trillion It has not always been so strong For a long time, China maintained a planned economy separate from the rest of the world After the founding of the Peoples Republic of China, China began to open its doors to the world Chinas economy grew considerably in the late 20th and early 21st centuries as it maintained double-digit growth rates and its booming economy led to the development of emerging markets. Over the past year, there have been concerns that Chinas economy is overheating and in response, the cashback forex government has implemented a series of monetary and fiscal policies to ease transactions and maintain growth levels. Did you know that the PBOC holds the largest amount of financial assets of any existing public financial institution? It now holds $3 trillion worth of U.S. Treasuries, not to mention the amount of bonds of other countries on its balance sheet. This is not too surprising when you consider the difference in economic performance between other countries and China. Can you imagine a reading of 0.18% in the prime rate? In 2011, however, the PBOC abandoned its original approach and adopted the traditional 0.25% rate increase and cut system In addition to interest rates, the PBOC can also adjust banks reserve requirement ratios (RRR) The reserve requirement ratio is the amount of cash that banks in China can keep By adjusting the deposit rate, the PBOC can control the amount of cash in circulation and keep inflation at If you are always confused between the yuan and the renminbi, just remember that the yuan is the official name of Chinas currency and the renminbi is the actual unit. Although China is reforming its exchange rate policy, the yuan is dependent on the U.S. dollar for pricing which means that if the dollar strengthens or depreciates, the yuan moves with it and therefore the yuan is not a commonly traded currency in the foreign exchange market. This dependency has led to tensions between the U.S. and China The U.S. has been making China a manipulator of the exchange rate because of the undervaluation of the yuan, which haters say gives China an unfair trade advantage and is the main reason for Chinas economic growth From Chinas perspective, it has loosened restrictions on the yuan in recent years They have started to launch bonds priced in yuan in Hong Kong Financial giants are said to be eager to convert their cash into yuan and then exchange it for the Chinese currency. GDP: This data serves as a report card for the Chinese economy, reflecting the extent to which the Chinese economy is expanding and contracting (lately its status has been the former, near double digits). If the CPI reading exceeds or falls below the Chinese governments intended target, the PBOC will change its monetary policy at its next interest rate meeting Trade Balance: A large part of the Chinese economy is made up of national trade, which means that the trade balance is one of the key indicators of economic growth PBOC Interest Rate Decision: The PBOC will Even though the RMB is not a commonly traded currency, that doesnt mean you cant profit from it because Chinas economy is so large that its economic performance will affect those countries with which it has strong ties, one of which is Australia. As such, Chinese economic data has the greatest impact on the Australian dollar of any major currency pair. Strong Chinese economic data suggests that Chinese demand for Australian goods is likely to increase, while declining Chinese economic data means that trade with Australia will shrink. This means that a slowdown in China will reduce investors appetite for risky and high-yielding currencies as they fear it will set back world economic development. On the other hand, a booming Chinese economy is a positive sign and market participants appetite for risk increases because of the economic fragrance. The timing of the release of the statement usually, Chinese economic data that exceeds expectations will push up AUD/USD or AUD/JPY, while lower than expected data will trigger short AUD trades The PBOCs interest rate resolutions are somewhat complicated as they are influenced by market sentiment