RMB Valuation

[earendil31]

I guess this is more for the long-ish term people. Has the gradual strengthening of the RMB vs. the US dollar resulted in any noticeable decrease in purchasing power? i.e. rent hurts a bit more, etc.

[Xiao Kui]

I don't think the strengthening of the RMB alone has made a very noticeable difference, but that coupled with inflation in China has. (I think this is just healthy inflation)

DOn't get me wrong, it's still cheap to live here, but IMHO it's not the paradise it was 5 yrs ago. Then again I left China for 2 years and came back, so maybe the difference is more noticeable to me than to someone who hasn't left China for any extended amt of time.

[mr.stinky]

over the course of one year, i haven't noticed much loss of purchasing power, as the

RMB has only risen from 8.1 to 7.8 to the USD during that time.

rent doesn't hurt a bit...not when my new 66-m2 apartment in a new high-rise is only

650/month. $83 (as opposed to $80 at the previous rate) for what would cost me

at least $750/month in a similar stateside location. (don't forget to add in the cost of

the move: 120 RMB for five guys and a truck.)

the only other major RMB expense is tuition, but i can live with 3600 RMB/semester.

otherwise can't complain: great meals 8-15 RMB, 8 RMB taxi fares, 1 RMB bus fare,

and beer usually costs 8 RMB (with free ice cubes).

[heifeng]

and beer usually costs 8 RMB (with free ice cubes).

Hey, why is your beer so much there? shouldn't be only be around 3 元 and you be use to 常温by now:mrgreen:

Well, I think the revaluation hurts, but just a little bit. I mean afterall, it's not really helping my purchasing power any...