CNY appreciation

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Title: CNY appreciation

Essay Details:

Subject: Business

Author: Ruth P

Date: April 17, 2016

Level: University

Grade: A

Length: 5 / 1372

Essay text:

This means that it has become more expensive to buy the CNY currency and the Euro has depreciated against it. b) The main reason that the CNY has appreciated so much against the Euro is that the factors which the exchange rate is based on has developed better in China in the last 2 years than they have in Europe. These factors are for example Economic Growth. Production in China is very high and the wages and cost of resources are low, this means that demand for Chinese goods and the CNY has increased. The high growth within China has lead to increased Aggregate Demand from Chinese which means that there is higher transactions demand for money...

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