Mareseatoatsanddoeseatoatsbutlittlelambseativy.

Friday, January 16, 2004

Yuan Revalue? Lots to think about with regard to China these days. When they revalue, Wal-Mart and the whole industry that centers around cheap Chinese goods will take a hit as the products become more expensive.

From New York Times: Small Business: Struggling With the Falling Dollar
Key point: The cost of imports from China, the United States' fastest-growing trading partner, have not gone up significantly because Beijing pegs its currency, the yuan, to the dollar. Yet that exchange parity has added to the pain of some American small-business owners who import goods from Europe and elsewhere that compete with Chinese-made products. Complicating matters, China has come under international pressure to revalue the yuan, and any relaxation of its policy could suddenly make its goods more expensive to Americans, too.

And in the news...

News reports regarding revaluing the Yuan (removing the peg). Conflicting reports, but it looks like it will happen soon.:
Google Search: china yuan revalue

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