The 1st of October is the National Day of China. It is normally the sort of bank holiday in the country. This time it overlapped the weekend, people have long weekend apparently.
In the older days, we’d go to NanJing Road for a walk after the family gathering dinner at Grandma’s house, which was located at one of the avenues across the busiest commercial road in Shanghai, NanJing Road. It would have festival lights beaming after dusk. It still has, just not only on the National Days.
With long extended weekend, people go on holiday somewhere, walking in NanJing Road is not most sought after these days. Too many people, grumped by the locals. The Shanghai-ese has long ventured out their holiday walks, from the city to afar. As always over the past few years, I scrawl down WeChat, the images posted on the “Moments”’ from different parts of world record my friends and family’s where about. They are gallivanting everywhere, package holidays, or self organised get-away. Just within this year, there have been 120 million overseas visits from mainland Chinese and only 650 million Chinese have passport.
This time, the 1st of October arrived with momentum, Chinese currency Yuan is officially one of the five currencies of SDR which IMF approves, that means yuan is equally important as dollar, euro, yen and sterling in the global financial market. The currency can convert freely in the market.
This can be huge, the impact is big in many ways, the scale of its significance can only be measured by time. In a very plain way, that means we can exchange the yuan at M&S and its alike before we holiday to China, rates fluctuate accordingly like the rest. For business, it can hedge and reserve directly. On the other hand, there can be more money flow from China, more than just come with its tourists.