Interesting tidbit. Did you know that on July 21, 2011, it will be a Thursday? Did you know that on Thursday, July 21, 2005, China depegged from the dollar and revalued its currency (slightly)?
China revalues yuan
Move away from fixed dollar peg could lessen competition for U.S. firms, raise import prices.
July 21, 2005
China announces the adoption of a more flexible currency system.
NEW YORK (CNN/Money) - In a move that could trim the trade gap with the United States, China revalued its currency higher against the dollar Thursday and said it would no longer have the yuan tied to a fixed rate against the U.S. currency.
The move, while small at this point, could be the first step to reduce competition for some U.S. companies from lower-priced Chinese imports.
A stronger yuan could also increase the sales U.S. exporters get from business with the world's largest country, one of the fastest growing consumer markets. U.S. exporters could keep their prices the same in U.S. dollars, thus lowering the price in yuan and spurring increased sales. Or they could keep prices in yuan level, and bring in a greater amount of dollars.
Reuters reported that U.S. Treasury Secretary John Snow praised the move in a meeting with reporters Thursday morning. Both the administration and members of Congress have been calling on China to end its fixed dollar-yuan peg. There is legislation before Congress that threatens trade sanctions on China if the yuan did not start trading freely in currency markets.
full article @ http://money.cnn.com/2005/07/21/news/international/china_yuan/index.htm
