China changing its currency policy may mean a big change for everyone!

• For a long time, China has (unfairly) kept the value its currency low because it helps keep Chinese industries competitive in the global market.
• China is expected to finally make a change, after lots of pressure from the Obama Administration.
• The change would mean a stronger renminbi (or yuan), more affordable American goods in China, and more expensive Chinese goods in America.
• If the renminbi is allowed to fluctuate, it could potentially increase the value of the U.S. Dollar.

Facts and Figures

• Since 2002, China has sold $2.187 trillion of its own currency to prevent it from gaining value.
• China is currently exporting four times more to the United States than the U.S. is to China.
• 6.82 renminbi equals 1 USD.

Best Quote

“Whether to let the yuan slowly appreciate or let it rise to a tolerable range after careful calculation, I think it is better to have that quick, prompt appreciation.” - Xia Bin, Member, Monetary Policy Committee of the Chinese Central Bank