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Final Assignment 1 Valencia Reginald G

ACC 3

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Reginald Valencia
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30 views

Final Assignment 1 Valencia Reginald G

ACC 3

Uploaded by

Reginald Valencia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Reginald Valencia April 23, 2020

MGT C402-301Y INT'L BUSINESS AND TRADE

Final Assignment # 1

1. The Currency I choose is Yuan of China.

2. Yuan is the currency in used in China, an Asian powerhouse that is making the
news for its unparalleled infrastructure projects around the globe. The yuan would be used to
price more international contracts. China exports a lot of commodities that are traditionally
priced in U.S. dollars. If they were priced in yuan. On December 1, 2015, the International
Monetary Fund announced that it awarded the yuan status as a reserve currency. The IMF
added the yuan to its Special Drawing Rights basket on October 1, 2016. Chinese leaders are
beginning to make it easier to trade the yuan in foreign exchange markets. To do this risks more
open financial and political systems. On March 23, 2015, China backed the Renminbi Trading
Hub for the Americas. The renminbi is another name for the yuan. That makes it easier for North
American companies to conduct yuan transactions in Canadian banks. China opened similar
trading hubs in Singapore and London. Chinese President Xi Jinping had pledged the
government’s commitment to reform China’s economy in a more market-oriented direction
when he first took office in March 2013. That made the POBC's claim that the devaluation's
purpose was to allow the market to be more instrumental in determining the yuan's value more
believable. The devaluation announcement came with official statements from the PBOC that
because of this one-off depreciation, the yuan's central parity rate will align more closely with
the previous day's closing spot rates.

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