As anyone who follows the subject of outsourcing or “low cost region sourcing” knows, two significant events occurred last week. China reported a second quarter economic expansion of 9.5% of GDP and China revalued the Yuan approximately 2% from 8.28 Yuan/ US$ to 8.11 Yuan/ US$. Probably of more significance than the modest revaluation, was the move to a more “floating” exchange rate based upon a basket of currencies.
According to the articles that I have read regarding these two events, the impact on the North American economy will be modest. It was generally agreed, however, that short of a majority economic upheaval, this revaluation is the first of many to come.