Unformatted text preview: China’s RMB Strategy Recently, people discussed a lot about China’s RMB strategy. People wonder what the real thing behind this currency strategy is. Personally, I think China’s currency strategy has its own long-term goals and short-term goals. Since China is the world’s largest exporter and the world’s second-largest economy right now, its currency really plays great important role in influencing world’s economy as well. China also attracts a lot of foreign direct investment, which makes China hold the largest share of foreign exchange reserves. This means China is really reliant on the U.S. dollar. It is normal for China to think of internationalizing its own RMB currency into the world economy platform. When the RMB appreciates, China has to sacrifice the entire countrymen’s benefits to meet the country’s needs. But this is just for short time period; Chinese people will gain extra country’s needs....
View Full Document
This note was uploaded on 03/01/2012 for the course BUSMGT 498 taught by Professor Herdon during the Winter '12 term at BYU.
- Winter '12