China's economy is the fastest growing on the planet. With much international trading running through China it is paramount to acknowledge the changes in their currency. This past Saturday Chinese government announced that they would allow the Chinese renminbi, (6.3: 1USD) to fluctuate as much as 1% throughout the days trading. The central bank of China allowed this fluctuation against a fixed benchmark value. This increase int volatility, property of changing, was only allowed 0.5% since 2007. The increase in volatility will affect the international markets involved with trading in China. This change will effect foreign exchange rates, bets on currency, and will cause "exporters to demand more long-term contracts". In order to properly asses the changing in international commerce we must understand our competition.
More information can be found at: http://www.nytimes.com/2012/04/15/business/global/china-adjusts-currency-trading-rules.html?ref=business
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