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U.S. bid to 'reform' the yuan sank 1930s China.

Publication: The America's Intelligence Wire

Publication Date: 18-APR-06
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COPYRIGHT 2006 Financial Times Ltd.

(From Financial Post)

Under a barrage of fallacious arguments from the Bush administration and the U.S. Congress, Beijing made a tactical retreat on July 21, 2005. It "reformed" China's exchange rate regime. After a decade in which the yuan had been linked to the U.S. dollar at a fixed rate, China adopted a managed floating exchange rate regime. And on the new system's initial day of operation, the yuan was allowed to move from 8.28 to the dollar to 8.11, a 2.1% yuan appreciation. Since then, the yuan has...

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