A currency is like gold and silver. It is not something that is stagnant. Its value will rise and fall based on a multitude of circumstances. Thus the RMB can be undervalued by 30 percent and still be undervalued by 30 percent and still be undervalued by 30 percent more. Just like gold can be undervalued by 30 percent, by another 30 percent, and another 30 percent. Which is why it appreciates at a rate of 25 percent a year.
So just like gold keeps appreciating, so will the RMB. We do not expect the RMB to appreciate a single time and never again. Like a precious commodity or a noble metal, the RMB will keep appreciating because it is worth it.
No comments:
Post a Comment