China revalues its currency

Copyright BBC NEWS World Edition

China has abandoned its currency's peg to the dollar and revalued the yuan by 2.2%. It now buys more US dollars than before.
With China both one of the world's largest exporters of manufactured goods and one of the largest importers of raw materials, the move's economic impact will be felt worldwide.

CLICK HEREto read BBC NEWS article on the revaluation of China's currency.

Michael McCafferty comments:

The US, in particular, has been worried that China's cheap currency gives it an unfair advantage as it sells its goods to Western consumers.

Already China has built up a huge trade surplus with the rest of the world, and appears to be able to make things more cheaply than its developing country rivals.

This move by China is going to have a real impact on both China's economy and the world economy.