2007-02-19 01:41:43 · 2 answers · asked by jhon n 1 in Social Science ➔ Economics
China has floating currency the economic problem would mutiply for China at this stage of economic developement. The reason is Chinese goverment gave out bad loans to industries that are acutal deadweight to the economy, and China banking industry is primative compared to USA, or Mexico. Floated the yaun prices would rise in USA, and China would have comsumption boom which is not sustianable with the Chinese instructure in place yet. China will loosen the exchange band for the yaun slowly as it reforms its finanical, and banking sectors. Finance, and Banking sectors need more economic freedom in politcal, and economic terms to modernize in China. Yuan will slowly float freeer in market graudally, but dont expect it to occur quickly in the next 8 to 10 years.
2007-02-19 04:07:33 · answer #1 · answered by ram456456 5 · 0⤊ 0⤋
Hard work and laxitives!
2007-02-19 02:48:32 · answer #2 · answered by be my Angel :) 3 · 0⤊ 0⤋