Related to our class discussion about currency exchange rates, China’s currency (RMB) value is increasing and to balance this out, the exchange rate for US currency (USD) is decreasing. Besides these two countries, Europe and the United States’ currency have been alternated in their depreciation. RMB’s popularity is influencing people to invest overseas which increases pressure to expand domestic exported goods so that each country can remain competitive in the trade market. Due to this effect, there will be inflation so China should be cautious of increasing their currency’s elasticity.
http://www.chinadaily.com.cn/cndy/2011-11/26/content_14166047.htm
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