dolma jewelry

Under international scrutiny for years, The Chinese Central Bank announced on Monday that they would no longer hold their currency at a fixed, undervalued rate. However, the Renminbi (RMB) is expected to rise slowly and gently against the dollar.

This is great news for USA-made products, as experts expect the appreciation of the RMB to allow for more expensive, comparable goods made domestically to be more competitive. However, it may be bad news for importers (like me) here in the US-as our costs are likely to rise.

My take on the currency situation possibly incongruent with my own self interest. As a student of Economics, I believe wholeheartedly that the market should determine the prices we set for our products-so if it means that my costs will rise, that’s just going to be one more hurdle to overcome.

And as with any global issue, there are many more facets we’ll need to consider-for instance, the decline of the Euro may cause Chinese pricing to fall, or perhaps the value of the dollar will rise…

More to come on my take on this topic.

Ashley