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China Must Drop Its Currency Peg
China Must Drop Its Currency Peg

... yuan's nominal exchange rate will rise by around 5 percent. In addition, there may also be some adjustment to the yuan's fluctuation band -- to a margin of plus or minus 2.5 percent, for example. Overall, the Chinese government has the room to appreciate the yuan's nominal exchange rate by 7 to 8 pe ...
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... domestic interest rates could decline to low levels  economy could fall into liquidity trap ...
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... C. North American Free Trade Agreement (NAFTA) D. The International Monetary Fund (IMF) 16. ____ Maintains a system of world trade and exchange rates. 17. ____ Created after World War II to provide loans for rebuilding 18. ____Settles trade disputes and enforces free-trade agreements between member ...
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AVOIDING AND MANAGING COMMON MISTAKES AND PROBLEMS Important Terms

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... to banks after the ruble’s recovery eased devaluation pressures, Governor Kairat Kelimbetov said. The rate charged on foreign-currency swaps and repurchase operations may be reduced by 1 percent in June, Kelimbetov said in an interview Friday in the capital, Astana, adding that there was “no frenzy” ...
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China`s Central Bank & Monetary Policy

...  Decrease in property development  Decreased investment in financial securities, thus slowing maturity of global financial markets  Negative effect on investors’ sentiments about future rates  Appreciation of currency ...
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Currency intervention

Currency intervention, also known as foreign exchange market intervention, or currency manipulation, occurs when a government buys or sells foreign currency to push the exchange rate of its own currency away from equilibrium value or to prevent the exchange rate from moving toward its equilibrium value.Generally, central banks intervene in foreign exchange markets in order to achieve a variety of overall economic objectives: controlling inflation, maintaining competitiveness, or maintaining financial stability. The precise objectives of policy and how they are reflected in currency manipulation depend on a number of factors, including the stage of a country’s development, the degree of financial market development and integration, and the country’s overall vulnerability to shocks.
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