• Fixed currency makes China a great travel value

    Posted on April 19, 2010 by ACT in China News.



    50 yuan note China

    Although many governments around  the world have urged China to allow its currency, the yuan, to appreciate to address trade imbalances, they neglect the exceptional value a fixed rate provides tourists traveling in China.

    Travel consumers have enjoyed  the predictable and favorable exchange rate for many years. Since 2007 China has kept its currency pegged to 6.82 yuan to the US dollar. Thus currencies such as the Euro, Yen and Pound which have appreciated against the dollar, provide an even greater value for European and Japanese tourists traveling in China.

    While some governments complain the fixed currency is artificially low to make Chinese export goods cheaper, they neglect the value travelers receive when touring the country.

    As long as the currency stays pegged to the dollar, China will remain an exceptional travel value. This will not last indefinitely, however, change is likely in the next 6-12 months. An April 9 New York Times article discussed when China might allow the yuan to appreciate.

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