21 June 2010 23:31 [Source: ICIS news]
WASHINGTON (ICIS news)--China’s decision to allow more flexibility in the exchange value of its currency - the yuan - will have little near-term impact for US manufacturers, but it may have positive longer-term impact on trade, private industry sources said on Monday.
The move on Saturday by the People’s Bank of China (PBC) to adjust the yuan’s exchange rate and make it more flexible was seen by many as a positive if modest step toward resolving the long-running dispute between ?xml:namespace>
But the low-valued yuan also meant that US exports - and those of other major industrialized nations - to
The disparity between the openly traded US dollar and the under-valued yuan led to a huge trade imbalance between
In Saturday’s PBC announcement, the
But US manufacturing interests said the shift in
“This does nothing for the flow of trade right now,” said Frank Vargo, vice president for international economic affairs at the National Association of Manufacturers (NAM).
Vargo noted that in the wake of the Bank of China’s announcement, the yuan had appreciated by about 0.5% against the US dollar, not a significant change.
“That’s not much of a shift,” Vargo said. “In terms of having effect on trade, we have member companies telling us that if the yuan moved by 5% or 10%, it would mean something - but others say they’d have to see a 20% appreciation before it would mean much.”
The National Association of Manufacturers is the oldest multi-industry trade group in the
Vargo and other observers said the shift in
The G-20 group is made up of the 19 major economies of Asia, the
“But the G-20 also have made it plain that
The weekend shift in
He said the other G-20 nations might press
Vargo said that if the
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