News’ title: Canada, China sign currency deal aimed at boosting trade

http://www.cbc.ca/news/politics/canada-china-sign-currency-deal-aimed-at-boosting-trade-1.2828707

http://ecocidealert.com/?p=8154

I would like to post this news because I am an international student from China. I am concerned with the exchange rate between Canadian dollars and RMB. And this news is related to the currencies’ exchange rate.

It is reported that “Canada and China have signed a reciprocal currency deal that’s expected to dramatically boost exports”. The biggest beneficiaries are the Canadian and Chinese business communities. Because this proposal allows them to save the exchange cost, to trade directly with Canadian dollar and Chinese Yuan, usually these two currencies would change to the US dollar first, then change to the other.

This is a political and economic opportunity. With lower exchange costs, businesses would be more likely to do import or export between these two country, which is good for economic growth in both countries. 

According to the data provided by the Bank of China, the Canadian dollars’ exchange rate is 541.59 at 00:00:05, Nov. 09, 2014, Beijing time. Compared to the exchange rate in last summer, about 572, it has been reduced by 5.3%. As the Chines yuan appreciates, Chinese customers would more like to buy Canadian goods and services, and travel in Canada, which would stimulate the economy in Canada.

Reference list:

“Accounting to the data provided by Bank of China, the Canadian dollars’ exchange rate is 541.59 at 00:00:05, Nov. 09, 2014 at the Beijing Time.”

http://www.boc.cn/sourcedb/whpj/

“Canada and China have signed a reciprocal currency deal that’s expected to dramatically boost exports”.

http://www.cbc.ca/news/politics/canada-china-sign-currency-deal-aimed-at-boosting-trade-1.2828707