The statement said China will immediately value the currency at 8.11 yuan, down 2 percent from the 8.28 rate previously. It also said it will now peg the yuan against a "market basket" of numerous currencies, although it will keep the yuan in a tight band rather than letting it trade freely. But the central bank did promise that the exchange rate band would be adjusted when necessary according to market developments as well as economic and financial situations.
The Yuan is still tied to the Dollar even if the tie is a little looser...
“even if the tie is a little looser...”
Sorry guy, with all due respect, you lose me there. Economics is a solid enough subject that getting loose with key items is something I just don’t subscribe to. Others have tried that with the Trade issue, and I just don’t drink the cool-aid.
I want 3 gumballs, no loose connections.
Yeah, Jedward. Guess he told us, huh?
And don't read this one either: How China Could Crash the US Dollar on a Whim
Up until two years ago, China’s currency, the RMB or Yuan, was pegged to the Dollar.
. . .
In short, China has several economic “weapons” at its disposal for countering the US, ranging from the manipulation of its currency to the diversification of its burgeoning stock of forex reserves. It also has several less blunt options to choose from, such as enabling Chinese companies to compete more directly and effectively with US companies, and opposing the US in securing a domestic energy supply. On all of these fronts, the US is essentially being held hostage, since it has become so dependent on China as the world’s factory. Ultimately, it seems unlikely that China will deliberately butt heads with the US unless it is first provoked, but America should nonetheless be on its guard, since its economy hangs in the balance.