China's Control of the Yuan To: Dr. Ronald Raygun, Chair DIA PACOM Strategy Committee From: Dr. StudentFirstName LastName, Staff Analyst DIA PACOM Research Division Classified Document Executive Summary China has pegged its currency, the Yuan, the U.S. dollar. What this means is that the Chinese government places a legal constraint that its currency can only be traded at a fixed rate of conversion which is tied to the U.S. dollar. This artificial level of control has helped China take advantage of its trade deficit by maintaining an artificially undervalued currency. In turn, the huge revenue generation from this market interference has helped China to significantly boost its economic and military capabilities. These developments are of...The end:
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