When I first visited China in 2005, I was happy to get 15 RMB to the pound (10 RMB being around 70p at the time). This made for quite a cheap holiday in China as I could quite easily eat a good meal for about 15-20 RMB. When I visited in July this year I found that the exchange rate wasn’t as good as it was, but I was still getting about 12-13 RMB for my £1. Unfortunately due to the world-wide economic crisis, the exchange rate is worse than it used to be. Now you will get 10 RMB for your pound. For myself it’s not a big deal as the 2 RMB I would be losing is only about 15p which is only enough to buy a Cadbury’s Fudge bar, but for my Chinese friend it’s a blow. 2 RMB is enough to get you a ride on the Beijing subway, or a return bus ticket. When you see that the average wage in China is 2000 RMB per month you can understand that it’s not as cheap as I believe.
My Chinese friend, who recently returned home to China, has found that she has actually lost money when changing into RMB. This is not just down to the exchange rate but the fact that prices have actually increased in China in the last few months. The Chinese Yuan (RMB) is getting stronger against other currencies such as the Dollar and the Pound which should be a good thing for the Chinese economy but, unfortunately, prices have been going up. A friend of mine in China has recently posted about the rising prices in China here
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On the flipside, when I earn money in China, it means I’m much richer when I head back to England over the Christmas holidays! If I earn 300 yuan for a couple of hours teaching, I get about ￡30 now rather than ￡20 about a year ago
I guess it all depends on where you earn your money and where you spend it – earn where the currency is strong, spend where the currency is weak! A shame for your friend though who is heading back to China from England!