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Finance News
China has revalued its currency
China has recently revalued its currency which has been fixed at 8.28 yuan to the US dollar for 10 years.
Due to the fact that china’s cheap currency gave it an unfair advantage over Western manufacturers they were continually under scrutiny form the world trade organisation.
I know recently here in South Africa there has been an outcry due to the fact that a lot of our clothing manufacturers have chosen to have there goods produced in China due to the fact that they can deliver the goods at a better price than the local manufacturers can.
How will this affect China?
China’s export trade will now become more expensive and maybe less attractive to some Western importers.
This will more that likely slow the growth rate of its exports which as we all know is the main driving tool of China’s economic growth.
The slow down of china’s economic growth will have serious consequences on its unemployment rate.
How will it affect the rest of the world?
Developing and industrial countries will be happy with this decision, giving them a chance to compete again in the export trade.
Developing countries may look back once again internally to get there products produced at a better price.
These are obviously a very few affect that will take place, I only mention them for these are the affects that you and me may notice. This move will definitely have drastic affects on all types of markets all over the world. Watch this space…
