Lets look at the value of the 100 RMB note....
When we came in 2000, it was worth about $12.10.
In 2001, the exchange rate was still 8.26, and it was worth $12.10.
In 2002, the exchange rate was 8.26, and it was worth $12.10.
In 2003, the exchange rate was 8.26, and it was worth $12.10.
In 2004, the exchange rate was 8.26, and it was worth $12.10.
In 2005, the exchange rate was 8.26, and it was worth $12.10.
At some point the exchange began to gradually fall until it reached 6.83, so it was worth $14.64.
On Friday, it was worth $14.64.
Today, it is now worth $14.72.
The difference does not usually seem so great when you buy average things. It is just a difference of a few cents.... but when you start to multiply that by bigger amounts of money, you find....
In 2004 when we came when the exchange rate was 8.26 that would be equal to $12.106.53.
Last Friday, when the exchange rate was at 6.83 that would be equal to $14,641.28
Today, after the exchange rate appreciated to 6.79 that same money is now equal to $14,727.54.
I did nothing.... and that money was worth $86.00 more.
I can't wait to see if the same things happens tomorrow!
Perhaps in the future would would see these kind of numbers for 100,000 RMB to USD.
I heard that at some point it will reach 6.5 which would equal $15,384.61
If it were to reach 6, then it would be $16,666.67
If it were to reach 5, then it would be $20,000.00
If it were to reach 4, then it would be $25,000.00
If it were to reach 3, then it would be $33,333.33
If it were to reach 2, then it would be $50,000.00
If it were to reach 1, then it would be $100,000.00
It is something that we probably do not usually think of, but this exchange rate plays a big role in some business decisions. When you figure for businesses those numbers probably have a few more zeros attached to the back of them. It can cause them to lose millions in a single day. It is no wonder the pressure to change the exchange rate exists. It causes more complications than we can imagine.
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