Update on Foreign Finance
As the economy continues to downfall other countries are affected too. China has been involved in the downturn too because the Yen has decreased severely at the hand of America. According to FXStreet.comHowever "the Chinese currency was pinned again at just above 6.8 for every USD." Currently the new Obama administration wants to accuse China for its wasteful spending because it has overspent and abused its right in economic free trade. Yet, according to the BBC China is still expecting new growth with its increase in technology, which will make it even more ahead of the U.S. dollar.
This pinning to the dollar is an important issue concerning balance of payments. I suspect, though, that China's economy is fairly dependent enough that they cannot act indiscriminately against the US. The global issues stem from America's world-wide influence.
ReplyDeleteAlso, the currency in China is the yuan. The yen is Japan's currency.