He says currencies must be allowed to move but economies should be allowed to stimulate growth even if that means exchange rates changing.
WeSwap, the London-based startup that helps travellers get a better exchange rate when changing currency in advance of a trip, has closed a decent-sized $7.5 million series A round, adding to the $2 million previously raised.
Use an online exchange calculator to get the most up to date information, and to see whether the exchange rate is changing rapidly.
China now has an incentive to allow the exchange rate to reflect changing economics.
Already, food prices are climbing, both for imports and for domestic produce, which is suddenly in greater demand in foreign markets because the changing exchange rate makes it cheaper there.
On the other side of the dollar coin, some companies that do most of their business abroad have not been above a little polite exulting in the changing exchange rate.
Exchange rates frequently change.
By changing the exchange rate, the central bank was effectively admitting that a cornerstone of its monetary policy since hyperinflation was quashed five years ago, by pegging the real to the dollar, was not working.
Instead, the European authorities have prescribed what is called an "internal devaluation" – shrink the economy and raise unemployment enough so that the country can become competitive, through lower prices and wages, without changing the exchange rate (that is, keeping the euro).
But Beijing has indicated that it will not be rushed into changing its exchange rate, especially if pressured by America.In any case, the current-account deficit cannot be corrected by a fall in the dollar alone: domestic saving also needs to rise.
