Background: China's recent decision to reform its exchange rate regime has attracted attention from exporters. A more flexible exchange rate means pressure of a stronger yuan against the U.S. dollar. Five years after China first moved into a managed floating exchange rate regime, export companies now have enough experience to minimize the impact of the forex rate fluctuation. Full story >>
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Q1: An increasing number of companies have been moving their factories from China to other countries like Vietnam and India. Can we blame this on the yuan's higher value?
Q2: Besides the impact on exporters, what other effects will the yuan's appreciation have on the Chinese economy?