The Chinese have at times held the yuan (the Chinese currency also c.pdf

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The Chinese have at times held the yuan (the Chinese currency also called a renminbi, {prounounced \"RNB\" which is slang like a buck or clams for US currency}) exchange rate with the dollar constant. This fixed exchange rate has caused the United States to accuse China of undervaluing it\'s currency to keep exchange rates favorable for China. Undervalued currency keeps exports from China desirable to the US consumer. How and why this process works and helps China to be one of the largest exporters in the world? Solution this process will help China to increase its foreing reserves ($US) and it helps to hold huge quantity of US $ with china. and it can be used to import other goods from other nations which it use the US $ to pay for imports. China will be benefited with this process untill US $ is dominating the world currecny markets. but if any thing happens and US $ losses its value in global market, at the times China will suffer much along with US. because the currecy value will be depreciated and china may hold huge quantity of US $. upto the time US currency dominate in the global currencies, china will be benefited..

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