Pressure mounts for free yuan

SANDY PARKER REPORT, VOL. 34, ISSUE 9, APRIL 12, 2010
The following extract is reproduced with permission from Sandy Parker Reports, Weekly International Fur News. Sandy Parker has been covering the fur industry for more than four decades. For most of that time he has published a weekly newsletter, detailing results of international pelt auctions, wholesale price trends, business developments and movements in the trade, as well as economic and political activities that may impact on it.

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International Fur News
with Sandy Parker

Pressure mounts for free yuan

CURRENCY EXCHANGE RATES ARE A HOT INTERNATIONAL TOPIC – specifically China’s renminbi, or yuan. Considering that China is the leading manufacturer and supplier of fur garments for the world, the exchange rate for its currency is of great interest to the fur trade. If the international economists are correct in their estimates that the yuan is undervalued by as much as 40%, unpegging it from the U.S. dollar and allowing it to float freely would have a major effect on the price of Chinese goods – potentially erasing their current competitive advantage.

Although China has been adamant in refusing to consider revaluing its currency, there were hints last week that there might be a crack in its stance. A scheduled visit to Washington by President Hu Jintao this week has prompted Treasury Secretary Timothy Geithner to delay a decision on whether to declare China a currency manipulator, which many in Congress have been pushing for.

IN THIS ISSUE
Big Price Hikes Pose Problem:
Normal Markups Too Much?
Await Early Sales for Clues
Mink Prices Seen Holding Firm
Pressure Mounts to Free Yuan

For extracts from back issues of Sandy Parker Reports see News Archive. Subscribers can access an archive of complete issues at www.sandyparker.com.