Exchange Rate between US Dollar and Chinese RMB

International
Management
Name of the Student
Name of the University
Author Note

Exchange Rate between US Dollar and
Chinese RMB
The exchange rate between US dollar and Chinese
RMB stands at one US dollar being equivalent to
6.91 RMB (Forrest et al. 2018).
This present exchange rate does not speak too
highly of US economic progress. It implies that US
goods in China are far cheaper than they were
before and Chinese goods cost more in the USA (Du
et al. 2018).
The current exchange rate is also not too different
from the exchange rate that was seen to be in place
in the year of 2008 when one US dollar was
equivalent to 6.87 RMB (Forrest et al. 2018).

What the Decline in the Dollar means for
the US
The decline in the value of the dollar is not
good for US economy at all as it means that
the value of the US economic program is
reducing greatly in the eyes of the rest of the
world, as far as international trade and
commerce is concerned (Forrest et al. 2018).

Best Strategy for MNC’s when faced with US
Dollar Fluctuations
The MNC should hold currencies with countries
that have very strong and centralized banking
systems
The MNC should immediately diversify when it
comes to the production of its goods and services
The dollar position should be potentially reduced
at a time when the dollar is seen to swing in
upward motion. Given the fact that the dollar is
one of the strongest of international currencies it
would not make sense for the MNC to sell off its
US dollars (Du et al. 2018).