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Speculation has mounted in recent weeks that the yuan will soon be revalued against the dollar.
Speculative traders chased other currencies and began selling dollars in anticipation of these currencies being revalued against the dollar.
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They will come under great pressure to revalue against the dollar, too.
Caught off guard and partly lacking the skills to hedge against foreign exchange volatility, many small Chinese exporters have closed after China revalued the renminbi by 2.1percentt against the dollar in July 2005.
At one extreme is Morris Goldstein, of the Peterson Institute for International Economics, who argues that the yuan is undervalued by 40% or more against the dollar and should immediately be revalued by 10-15%.
Although nobody expects sudden leaps, the yuan does appear to be on a steadily upward trajectory, having risen by a further 4% against the dollar since the government first revalued the currency by 2.1% in July 2005.
Since it was revalued by 2.1% in July, the yuan has crept up by a mere 1% against the dollar.
Set against that, the most dangerous piece of anti-China legislation a bill to slap 27.5% tariffs on Chinese goods if the currency is not revalued by the same amount—has been formally withdrawn.
The social care workforce must be revalued.
Austria and Switzerland revalued their currencies upward in relation to the dollar.
In 2005 President Fidel Castro revalued the "convertible peso" by 8%.
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