

Yuan shot heard round the world but quiet in China - rjett
http://www.reuters.com/article/idUSTRE65I11B20100620

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pmjordan
Forgive my ignorance, but what exactly stops the Yuan's value fluctuating
based on market conditions? If the likes of George Soros can destabilise the
GBP back in the day, what exactly keeps the Yuan stable? Does the Chinese
government basically promise to indefinitely buy and sell Yuan at a fixed USD
exchange rate?

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hga
Partly, but I think the biggest method is that the currency isn't freely
traded, e.g. see the end of
<http://en.wikipedia.org/wiki/Renminbi#Managed_Float>

Individuals can only exchange $50,000 per year and $500 per day.

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elai
So what do the wealthy hitting it large in china do?

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hga
If they aren't part of the nomenklatura or otherwise have enough pull I'd
assume deposit their money in a PRC bank, stock market or venture, etc. When
there are currency controls you by definition don't have much in the way of
out of country options.

