When is the Chinese currency, the Yuan, going to devaluate?

Answer 1

China has been asked to devalue their currency since 2 or 3 years ago by the USA becuase china has been gobbling up US Dollars.

I don't think china will devalue the yuan in the next 2 years. They have so many import requirment because of the fast pace development of some key cities in China. Devaluing the yuan would would increase the cost of development.

Answer 2

Relative to what?
I think it is strengthening to the US dollar, and will likely continue to do so for a while:

"China's currency, which for the previous decade had been tightly pegged at 8.28 renminbi to the U.S. dollar, was revalued on July 21, 2005 to 8.11 per U.S. dollar, following the removal of the peg to the US dollar and pressure from the United States. The People's Bank of China also announced that the renminbi would be pegged to a basket of foreign currencies, rather than being strictly tied to the U.S. dollar, and would be allowed to float trade within a narrow 0.3% daily band against this basket of currencies. The PRC has stated that the basket is dominated by the U.S. dollar, Euro, Japanese yen and South Korean won, with a smaller proportion made up of the British pound, Thai baht, Russian ruble, Australian dollar, Canadian dollar and Singapore dollar.

As of August 29, 2007 the renminbi traded at 7.5505 yuan per U.S. dollar which is a 9.7% increase since the removal of the peg. There are frequent suggestions that the yuan is undervalued, often on the basis of purchasing power parity analysis (see below). However, some studies suggest that the yuan is not in fact undervalued[15]."

Answer 3

Meg's answer is a good one, but let me add a little more to her answer. The yuan is pegged to the U.S. dollar. It is pegged at a rate that most countries see as undervalued. The Chinese have been under pressure to revalue -- increase the pegged rate -- but they have resisted so far.

In addition, the US dollar has been depreciating for some time. Since the Chinese currency is pegged to the US dollar, their currency is effectively depreciating as well. This will bring the Chinese -- and the US -- under a great deal more pressure in the next few months. European countries are already complaining that the euro is too strong, and that more needs to be done about the situation.

Answer 4

China keeps their currency under valued so it can protect it's industries. If it devalues more the world would throw a fit, so they won't devalue for a long long time.

Answer 5

By softly linking the YMB, it still acts like a growth stimulus.because it makes trade with the U.S. and other developed nations very easy. That stimulates job growth and generates tremendous wealth within China.

The chinese won't let the YMB freely float against any other currencies. It would slow the growth of their economy too much.