Dollar and Yuan
By stlplace on Feb 17, 2006 in 401k and Personal Finance
This afternoon I exchanged my last USD 80 at Bank of China in Kerry center. After that I only have $ 8 left at my pocket. I am not extremely disciplined at budgeting. But I think another reason is whenever I saw something in the RMB price, I tended to divide it by 8. This gives me a false sense of “everything is so cheap”. When all these “cheap things” added up, they are no longer cheap any more. I did pay more attention to the price of things lately, e.g., give up the latte at Starbucks for regular coffee , otherwise I won’t have $ 8 left.
Yuan is also going strong against dollar, I remember last summer I get Yuan 8.2 for $ 1, this time it’s about 7.97. Will this trend stop? I don’t know. One thing I do know is China’s economic growth is still very fast compared to the US. And the growth will be there for a while.
