Asia, and especially China, has become an increasingly valuable cog in organizations like the International Monetary Fund and numerous global markets. Financial institutions and traders recognize that China’s financial and political health are integral for global economy.
The yuan, China’s currency, has increased against the dollar reaching a record high. Many financial experts believe this could have serious impact on both Chinese and global economy.
Is one financial insider said, in an interview with AdvisorOne earlier this year,
“There is a $30 billion a month in foreign currency sent to China through trade… That $30 billion could add to the liquidity of the Chinese economy by appreciating it further and making imports more expensive. That action will cause importers to buy more by paying in foreign currency, and that causes Chinese foreign product exports to drop due to their greater cost.”