China exchange move may hit buyers
29 August 2012
The cost of Chinese exports could rise by 30 per cent in the next five years, following a small but symbolic revaluation of the country’s currency.
According to analysts, purchasers sourcing there face price rises of around 2 per cent in the immediate future.
Before last month’s move, the Chinese currency, the renminbi (known within the country as the yuan), was pegged to the US dollar at a rate of 8.28. This kept the price of its exports low.
But the change means the currency is now “pegged” to a...