Article Image 29210

What Asia's economic situation means for money transfer

All eyes are on Asia. As China’s economy continues to slow down, it’s Japan making headlines with its indecision about whether to continue with quantitative easing (QE). While the country flits between yes and no, we outline how this will affect your international money transfer.

Chinese slow-down

Renminbi (RMB) is China’s official currency and has been a dominant force for more than ten years. RMB is strictly controlled, but its value can still slightly fluctuate. The biggest change in its value was in August this year, when the People’s Bank of China surprised the markets by devaluing it by around 4%.

If you’re using RMB, buying foreign currencies will be more expensive: 10,000RMB will currently buy you around $1,570, but this time last year, you would've got $60 more.

On the positive side, you’ll get more for your money if you make a transfer from a strong currency into Chinese RMB – so if you’re thinking of making a big purchase in China, now’s the time to do it. It also means that you’ll notice a lot of ‘made in China’ goods, like computers and telephones, are that bit cheaper abroad.

Japan keeps QE

Japan’s economy is going through difficult times, with an ageing population and the ongoing aftershocks of a major market crash in the 1990s. The government’s battling this in a number of different ways, and one of the best-known is quantitative easing. The government is buying financial assets, including government bonds, to reduce interest rates, encouraging people spend more and boost the economy.

So far, so good. But what about the money markets? QE has caused the yen’s value to drop considerably from its '80s heyday. The low value means that tourists in Japan will find that things are a lot cheaper than a decade ago. If you’re sending money to Japan, you’ll also find that you get more for your money than you would the other way around. However, this does mean that, for people living in Japan, imported goods like dairy products are much more expensive – and the same goes for foreign holidays.

The situation is ongoing. The Bank of Japan decided this week to keep QE following an earlier announcement that it wasn't needed any longer. Who knows how long this latest stance will last. Many economists think China’s devaluation of the RMB is just one step on a long road of economic reform – in other words, its value could further change. If you’re sending money abroad, make sure to use The Money Cloud’s free comparison tool to get the best rates. 

Comparison tool

Felicity Liebmann

Used your service last week to get travel money from ICE and it all worked beautifully. Very efficient and easy, the cash arrived when it was due so there was no hanging about waiting or anxiety about it not arriving when promised.

Andy Ferguson

Format is very organized and incredibly informative. All the information is right there and it is all pertinent to what I need to know. Great work.
washington hotel


As an overseas investor, regardless of the method of hotel management you will decide to opt for, you will be exposed to what are often volatile exchange rates, whether paying for your investment, running costs and overseas supplies and hotel management employees. Read the definitive guide.

Paying for overseas holidays


When paying for your dream holiday in the local currency of your destination country, you want to make the most of superior exchange rates and low fees offered by the foreign exchange brokers listed on our site. This will ensure that you save money and your funds are protected.

Market Insights

Sign up for our newsletter.

Thank You for subscribing to our Newsletter

You have successfully signed up to our Newsletter