After years of barely allowing the renminbi to adjust to the dollar according to market value, China made an announcement this weekend that they would allow their currency to adjust more in line with the market. Keeping to their word, the yuan advanced to its highest level in two years in trading today.
What does this mean for us? Possibly more expensive imports? Maybe less outsourcing of jobs? Maybe a devaluing of that debt that ol’ Dubya borrowed to kill people in Iraq?
Overall, I think it’s a good thing for us, as it will bring more fairness to our labor competition. It could benefit the Chinese as well, since their strengthened currency could help them to import many great things for sale outside of China.
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