Chinese Yuan not internationalized.

[noob_trad3r]

What would happen if the Yuan would trade like other currency. And if it did wont it make Chinese products more expensive.

 

[Ivanovich]

If it were allowed to free float, then yes, a stronger Yuan is a definite. That would make Chinese goods more expensive and is probably the sole underlying reason why the Chinese won't let it happen.

 

[noob_trad3r]

Quote from Ivanovich:

If it were allowed to free float, then yes, a stronger Yuan is a definite. That would make Chinese goods more expensive and is probably the sole underlying reason why the Chinese won't let it happen.

Which in some way is equivalent to dumping goods on the US.

I wonder why the US does not add some kind of tax on chinese goods unless they buy more from us to make things more equitable.

 

[college_trad3r]

yeah they won't let that happen now. The cut-off point is the poverty line that can explode unemployment.