China’s Experiment with a Market-Rate Yuan
1. What usually makes currencies rise and fall?
2. What happens to the currency if investors, companies and government buy and sell dollars?
3. What does the Chinese government do every day before trading starts? What is this operation called?
4. What is the percentage band of the yuan?
5. How can the currency be trades if the band is set at 6.5?
6. Which risky experiment was made by the Chinese government last summer? Why?
7. How did the global markets react to it?
8. What was the next unsettling step undertaken by the Chinese government?
9. What did the investors, businesses and citizens do in retaliation?
10. What does the Chinese government try to do now to prevent such responses in the future?
