Why does China's currency policy make sense for them?
Answer:
Their policy is an export oriented growth policy.
Unfortunately, their largest customer (the U.S.) is the world's largest debtor nation. Our currency should have fallen a long time ago because of our debt. The Chinese, in order to keep their best customer buying their output, has been gobbling up U.S. dollars in order to keep the value of the dollar strong enough for Americans to buy Chinese imports.
If the Chinese were to let their currency rise, their exports would be more expensive and their export oriented growth would slow. Even Walmart shoppers would be asked to pay higher prices, which they can't because they're poor to begin with.
Because otherwise they wouldn't use.
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