Posts Tagged ‘USD’

Why China’s Currency Change Matters To U.S.

Monday, June 21st, 2010

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

The Dollar is…

Sunday, July 5th, 2009

The (U.S.) dollar is the official currency of the United States.