Rise In Yuan Benifits Macau

Written on January 16, 2007 by admin

The Macau Post Daily reported the president of the Macau Monetary Authority saying the rise in value of China’s national currency, the yuan, is expected to have a positive impact on Macau’s economy.

He said that because of the strong yuan that exports from Macau to China will be cheaper, a “collateral effect” that local businesspeople really should take advantage of and that they must take advantage of Chinese Economic Partnership Agreement (CEPA).

The president Mr. Anselmo Teng also said it was expected that the yuan was getting stronger, because of the coninued economic growth of mainland China. But he did recognize that a strong yuan would mean that Chinese products will become more expensive in Macau, and this could cause a higher inflation, which in November stood at 5.2 percent.

But on the other hand, the rising value of the yuan will benefit the local tourism industry as the purchasing power of mainland Chinese visitors will increase. “The higher value of the yuan is beneficial for Macau’s economy, which is focused on tourism,” Teng said. The exchange rate today is 1.0296 Macau patacas for 1 yuan.

Last year in 2006, more than half of the 20 million visitors to Macau came from mainland China.

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