Description: Signals from the two capitals of Beijing and Washington have convinced experts that China will ease its currency’s peg to the U.S. dollar, although the timing of the move and the details of new regime remain unknown.

Source: Marketwatch.com
 
Date: 04/08/2010

Link: http://www.marketwatch.com/story/pboc-advisor-urges-managed-float-for-yuan-2010-04-08?siteid=nwtwk

Questions for discussion:

• Summarize the explanations offered for changes to the future value of the Yuan?
• What is your prediction? Explain your thinking.
• How should currency traders respond to the information presented in this article?
• How should corporate financial managers dealing with the Yuan respond?