Reply #2: The yuan is pegged to the dollar, so.. [View All]

[TreasonousBastard]

if the dollar goes up or down the yuan goes with it.

The problem is that the dollar is going down so everyone's else's imports are getting more expensive. Not China's, though, and their's stay at relatively the same price.

If they revalue the yuan (probably won't happen soon) it shouldn't have any direct effect on the dollar.

Indirect effects? Too many variables there-- will it cause inflation (dollar down, or maybe up) with chinese stuff more expensive, will it reduce the trade deficit (dollar up) or make it worse (dollar down) ...