An international economic chess game just got more interesting, and metal fabricators may one day see the benefits.
Today the Chinese currency rose against the dollar 0.42 percent in Asia—not much, but that’s the biggest one-day gain in five years. This came after Chinese officials announced on Saturday that they would allow greater flexibility in the value of China’s currency.
On one side of the table is President Obama and Congress; the other, the Chinese government. The issue: currency manipulation. China had pegged its currency to ours. Wherever the value of the U.S. dollar went, so did the renminbi. This gave what many have called an unfair advantage to Chinese exporters. It’s something that’s been painfully obvious to the manufacturing community, but a message that has had to be trumpeted again and again to the folks in Washington.