Pen Price Increases

[DCBluesman]

China’s central bank announced late today that it would begin allowing the country’s currency to fluctuate more during each day’s foreign exchange trading but again rebuffed demands from the United States and Europe for a sustained rise in the currency’s value.

It appears that pen kit prices are destined to continue to rise over time, but not nearly as dramatically as some US and EU officials want. The yuan has increased in value against the US dollar about 2% since it was un-pegged from the dollar. This continues to give Chinese exporters a significant price advantage in the world market. US and EU officials would like China to allow full fluctuation of the yuan which would allow it's value to increase by approximately 25%, thus making China's goods considerable more costly than they are today.

 

[GaryMGg]

Peter,
Seems to me Lou's statement is sound based on economic theory AND even what you wrote. If I can paraphrase & summarize, the Chinese gov't is gonna let the yuan fluctuate somewhat but not enough to truly match real-world conditions. That should result in slightly higher prices and lightly declining demand
[]

 

[wood-of-1kind]

Originally posted by GaryMGg
<br />Peter,
Seems to me Lou's statement is sound based on economic theory AND even what you wrote. If I can paraphrase & summarize, the Chinese gov't is gonna let the yuan fluctuate somewhat but not enough to truly match real-world conditions. That should result in slightly higher prices and lightly declining demand
[]

Yes, Gary you've captured the true "intent" and as a result I've retracted my earlier statement. Pens will cost more but still very competitive relative to what we are paying from US/Canadian sources.
-Peter-[]

 

[thewishman]

The yuan can now fluctuate up to .5% per day rather than the old .3% per day. Almost doubling the available range, but still not a large range.

Chris