China, now having displaced Germany as the world's largest exporter, is currently facing increasing pressure to make the Yuan a free-floating currency. Back-to-back interest rate rises and a high reserve requirement have stiffened the backbone of the Yuan further.
Comments and discussion are always welcome. Please provide your thoughts!
This is a temporary arrangement...in the long run China will have to free float the currency. But the currency is the least of their problems...the country will face political and social backlash as people demand great freedoms and undermine the Communist system...the country is a risky long term bet
Posted by: mike | 03/03/2010 at 11:29 AM