Monday, June 21, 2010

The Currency of the Future...?

The US dollar has been the reserve currency of choice around the world for over half a century. However, Americans might want to become more familiar with the renminbi or Chinese yuan (sign: ¥; code: CNY), the official currency of the People's Republic of China (PRC). Beijing's announcement this weekend that China would loosen the yuan's de-facto peg to the US dollar essentially means that the yuan will likely begin to increase in value vis-à-vis the dollar. The relationship between the yuan and dollar will be a hot topic in the coming months as the US contends with what appears to be a less than spectacular economic recovery.

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