Why we must wait to free-float the renminbi (China)

FT ^

[Eric Paul]

The characters next to Mao's head say the amount and Yuan. Nowhere on the note does it say Renminbi. On the back side it does say Zhounguo Renmin Yinhang but this is not the name of the currency either it is the name of the bank, China's People's Bank. Finally if you are interested in changing your notes back to dollars while in Beijing you can easily do it at the Holiday Inn Lido, I doubt this is the only hotel you can do it at but have not checked any others as I like to stay there.

[batter]

Thanks for the bump.
I'll be the first to admit that I don't have a great knowledge of the currency markets but got an idea from some of my university econ and business classes. RS would scare me as an importer. Evidently s/he doesn't seem to know how important currency exchange rates are to the cost of products...I don't think RS was being overly beligerant to you but they seemed unwilling to try to understand your point regarding the currency. RS is totally focused short-term ability of their product to make money, rather than the long-term ability of their product to make money without the high overhead of constantly switching suppliers (to maintain the low labor costs etc) or the potential of a manipulated market to burst....something it seems many manufacturers are doing. Worse, this could come back to bite investors. When it does, it will be interesting to see who is blamed; there have been plenty of news reports with warnings regarding China's artificially inflated markets and dubious banking 'industry' (which may need yet another bailout).
Let me know if I'm way off on what I've just posted, but that is how things currently appear to me.