By now, you've probably seen that China revalued the Yuan today. While the current revaluation is minimal (approximately 2%) -- and well under the 15-30% change that some economists argue would constitute a true market valuation -- the move represents a huge shift in practice. Why? China has agreed to move to quasi-floating "managed" rate that will now be based on a basket of currencies, not just the dollar.
In the coming days, I'll share some thoughts on what this mean for global sourcing. Stay tuned, as we examine how China has replaced a "peg" with a less secure, though more worldly "tack" -- and what it means for Spend Management. In the meantime, you can also read a previous blog entry that I wrote about the Yuan by clicking here (scroll down to the bottom of the page for the article).