President of Capital Financial Advisory Services in Sacramento California Keith Springer Announces the Release of His Special Market Update Report
What does a stronger Chinese Yuan mean for the world?
SACRAMENTO, Calif. June 21, 2010 – Keith Springer, President at Capital Financial Advisory Services provides in-depth analysis on the impact of China’s announcement to allow more flexibility in its exchange rate in his special market update report.
China announced that it would allow more flexibility in the exchange rate of the Yuan. It's as the Chinese finally awoke from a long slumber to realize that they are a first world nation with financial power. The decision comes after intense pressure by the US and other members of the G-20 who have complained that pegging the Yuan to the dollar unfairly favored Chinese exporters.
This move is really about time as the +15% rise in the value of the dollar this year has put significant pricing pressure on Chinese exporters, especially in hard hit European markets. This development favors US exporters and hurts Chinese exporters as the price of Chinese goods will increase for US buyers, and US goods will become less expensive for Chinese buyers.
One concern is that US debt will be less attractive to Chinese investors as this is certainly a first step towards a fully floating exchange rate. However, even with dollar holdings now 'perceivably"
To view more of Keith’s newsletters visit www.KeithSpringer.com and click the “Weekly Economic and Market Updates” link, email Keith@KeithSpringer.com or call (916) 925-8900
Keith Springer is President of Capital Financial Advisory Services, a SEC Registered Investment Advisory Firm, frequently provides commentary and analysis for various global and national media outlets. He has developed a proprietary process for successfully building tax-efficient retirement portfolios and has been providing specialty wealth management services for over 25 years.
