Thursday, July 21, 2005

Good News For U.S. Exporters?

After resisting pressure for some time, China has decided to remove its currency peg to the dollar. It has decided that the yuan, the national Chinese currency, will "float in a tight band against a basket of foreign currencies."

Of course, we don't know what currencies are in the basket.

Now for the good news, short term anyway.

"The yuan currency has been strengthened, effective immediately, to a rate of 8.11 to the U.S. dollar, compared to the 8.28 it has been set at for more than a decade."

Full story here.

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