While China’s President Hu Jintao is in Washington D.C. to attend President Obama's nuclear summit this week, the discussion on China's currency has been heating up. The majority of commentators suggest that the Chinese Yuan is undervalued somewhere between 20%-30% and that it is exactly this artificially devalued currency rate which makes Chinese exports cheaper.
The debate continues and political pressures have been increasing towards pointing a finger at China, finding an easy culprit for the millions of lost US manufacturing jobs.
Within this heated debate, it is a rare to find a level headed opinion. Mark Dow, a fund manager at Pharo Management, does exactly that. Please consider this excellent assessment of the possible impact of an appreciation of the Chinese Yuan and what it means in reality for the American consumer.
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