China's Central Bank Allows Its Currency More Volatility
This
news story about China’s economy shines light on the fact that China’s
government is loosening its grip on on its economy and allowing its currency to fluctuate more widely against the US dollar. By China agreeing to loosen their hold on their currency, the citizens are able to earn more money and spend it more freely. Also prices will start to go down and become more affordable since the renminbi can fluctuate against other currencies. The Chinese government has also stated that it is going to start allowing more private banks to operate and start freeing up bank deposit rates. This will ultimately help China in trade and many private investors will start to hope for more steps to radicate the Chinese economy.
Barbozo,
David. "China's Central Bank Allows Its Currency More Volatility."
New York Times. nytimes, March 15 2014. Web. March 15 2014. <http://www.nytimes.com/2014/03/16/business/international/chinas-central-bank-raises-the-volatility-of-its-currency.html?hp>
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