How A Rising Yuan Could Affect U.S. Investors
(Businessweek) — U.S. investors have plenty of theories about the eventual impact of China’s new currency policy: A higher yuan could boost commodity prices, encourage U.S. exports, control Chinese inflation, and spark U.S. inflation. Yet, investors say, it won’t do any of these things soon. The People’s Bank of China said on June 19 that it would “enhance the renminbi exchange-rate flexibility,” allowing the value of the Chinese yuan to rise. The currency has been set at an artificially low level to facilitate Chinese exports.
