8 (RMB to the US$) is a Lucky Number

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With a report from the Treasury Department on May 10, the US has put away its favorite stick, and instead has offered an olive branch to China by saying that it is not a “currency manipulator”. Nevertheless, the US will continue to “actively and frankly” pressure China to relax exchange controls.

A report from Xinhua notes: “The exchange rate of RMB against US dollars has appreciated 3.4 percent by May 10 since the currency reform was introduced last year”. And the FT reports that the RMB has now broken through the important “psychological barrier” of 8 to the US dollar.

8 is, of course, a lucky number in China – representing wealth. It certainly seems to have done the trick for US-China trade relations. For the moment.

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4 Responses to “8 (RMB to the US$) is a Lucky Number”

  1. Archive » America’s Unbalanced Approach to Balanced Trade| China Business Blog Says:

    […] that the surplus could reach US$138.4 billion (up from $102 billion last year). The RMB (which passed the lucky 8 mark earlier in the year) rose another 0.36 percent to 7.9732 per dolla […]

  2. Archive » The Rise and Rise of the RMB| China Business Blog Says:

    […] nd Rise of the RMB Related entries: General, Investment, Economy The RMB hit the magic 8 in May, and just keeps going up…and is now reported by People’s Daily (PD) t […]

  3. | China Business Blog Says:

    […] end of 2010. All these reserves add to the pressure for an appreciation of the currency (which passed the “luck 8” figure in May) , and a Bloomberg report notes that: “A statemen […]

  4. Archive » RMB: Still Rising| China Business Blog Says:

    […] end of 2010. All these reserves add to the pressure for an appreciation of the currency (which passed the “lucky 8” figure in May) , and a Bloomberg report notes that: “A stateme […]

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