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<p>[QUOTE=&quot;medoraman, post: 1622527, member: 26302&quot;]&quot;I don&#039;t buy the argument that a stronger currency hurts exports. 10 dollars or 100 pesos, what&#039;s the difference? They both represent the same buying power. The only reason someone wouldn&#039;t want another nation&#039;s currency is if it was anticipated to grow weaker after being acquired.&quot;</p><p><br /></p><p><br /></p><p>Read more: <a href="http://www.cointalk.com/t221322-2/#ixzz2Iu5RnUbs" class="internalLink ProxyLink" data-proxy-href="http://www.cointalk.com/t221322-2/#ixzz2Iu5RnUbs">http://www.cointalk.com/t221322-2/#ixzz2Iu5RnUbs</a></p><p><br /></p><p>Come on man, you really don&#039;t see how currency strength affects exports? Let&#039;s see, Korea, Japan, and China all make the same iphone part. The cost from each Korea and Japan is about $2 a unit, from China its about $1.75 a unit. The Yuan strengthens due to it being &quot;gold backed&quot;, and the cost of that part goes up to $2.50 in USD. China just lost 1000 jobs, since Apple will now buy that part from Korea or Japan. Multiply that over thousands of industries and TODAY if the Yuan increased 30% against the USD China will lose millions of jobs.</p><p><br /></p><p>THAT is how currency affects imports/exports, and WHY currency values versus other currencies are hugely important. NO net exporting nation on earth wants their currency to appreciate, lest they have to deal with massive unemployment.[/QUOTE]</p><p><br /></p>

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