Issue Date: Vol. 52, No. 5, May 2012, Posted On: 4/19/2012
China Allows Yuan To Increase In Value Against Dollar
by Staff Reporter
bulk vending, vending business, amusement business, vending supplies, bulk vending supplies, Chinese yuan, currency trading, Chinese imports
BEIJING -- China announced on April 14 that it will allow its currency to fluctuate up to 1% against the U.S. dollar. The move to widen yuan's trading range went into effect Monday.
According to U.S. economists, the policy change will not likely eliminate Beijing's tight grip on the yuan. However, they see the change as an important step toward addressing foreign complaints about China's currency policies.
At present, one yuan is valued at 16¢ or less against the U.S. dollar.
Long viewed as undervalued, the yuan, also known as the renminbi, plays an important role in the supply chain for America's bulk vending and amusement operators. While a stronger yuan would help control Chinese inflation by making imported commodities cheaper, it simultaneously would make Chinese exports more expansive. For suppliers that depend on manufactured goods from China, such as capsule merchandise and plush toys, the new policy could eventually mean higher prices.