Carey School of Business Faculty Members Discuss Devalued Chinese Currency in the News
Carey Business School Assistant Professor Alessandro Rebucci and Senior Professional Instructor Roger Staiger were quoted in news stories appearing in The Baltimore Sun and on WBAL-TV, Baltimore’s NBC affiliate, respectively. In separate pieces, the two faculty members discussed the devaluation of the Chinese yuan and its impact on the national and state economies.
Interestingly enough, China’s decision to devalue its currency impacts the local Baltimore Metro economy more than you may think. China is actually the third-largest destination for Maryland exports after Canada and Saudi Arabia. The Asian powerhouse also has a vast consumer market for well-known Maryland companies like Under Armour and McCormick & Co. According to the International Trade Administration, Maryland businesses sold $714 million worth of goods and services to China last year.
In an August 15th Baltimore Sun article, Rebucci called last week’s devaluation “small movement in the big scheme of things.”
“What is important here is what is the change anticipated for the future? What do the last [few] days tell us about the future next few months and next few years?”
One view is that China “simply wants a larger role in market forces determining its exchange rate on a daily basis,” as part of its bid to be accepted as a reserve currency in the International Monetary Fund’s special drawing rights group, Rebucci said.
On August 12th, Staiger gave his views on how this news will change things here in the States to WBAL-TV.
“What that’s going to do is strengthen the dollar,” said Roger Staiger… “You’ve seen, basically, a leveling off in the last six, seven, eight months. I think (we’ll) continue to see anemic growth going forward in the U.S. equity market.”
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Max Pulcini
Max Pulcini is a Philadelphia-based writer and reporter. He has an affinity for Philly sports teams, Super Smash Bros. and cured meats and cheeses. Max has written for Philadelphia-based publications such as Spirit News, Philadelphia City Paper, and Billy Penn, as well as national news outlets like The Daily Beast.
