Is Chinese RMB likely to devaluate in 2009? Among US dollars, JP Yen, and Aus dollars, which one is a better choice? Shall I exchange my RMB into US dollars?|||The government controls the exchange rate for the RMB and the Chinese will look out for their best interest. In the free market, the RMB would likely devalue...and I suspect the Chinese government will want a weaker RMB to improve export prices.
Compared to the past several years, the US dollar is strong now and the JP Yen is very strong now. The Aus dollar has fallen to very low levels. In my opinion, all three of these currencies have reacted to currency investors who are looking for a safe place to keep their money during this global recession. However, I can see no good reason why the Aus dollar is so weak. In time, the A$ should climb to its former relative strength.
The US$ and Yen should fall once the world economy stabilizes again and currency traders regain confidence.
This is my informed opinion only, and you should consult with other people whose opinion you respect.
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