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2013년 12월 3일 화요일

About 'forex exchange news'|Forex news flash exchanging







About 'forex exchange news'|Forex news flash exchanging









China,               Cuba,               Laos,               Vietnam               and               North               Korea               are               the               only               Communist               countries               left               in               the               world.

While               the               others               are               relatively               small,               those               at               InvestTechFX               believe               that               China               is               on               track               to               overtake               the               United               States               as               the               largest               economy               in               the               world,               and               one               that               arguably               holds               the               greatest               economical               power.

To               date               she               maintains               a               currency               pegged               to               the               $US               and               of               late,               one               that               is               pegged               to               a               basket               of               major               currencies.

Forex               trading               of               the               Yuan               will               be               heartily               welcomed               if               it               is               floated               on               forex               currency               exchanges.

To               her               credit,               China               has               remained               very               consistent               in               a               rapidly               changing               world               which               has               experienced               as               many               negative               experiences               as               it               has               positive.

Even               in               the               Asian               Economic               Crisis               of               the               90's,               China               remained               firm               in               its               economic               policy               and               at               that               time,               was               praised               by               the               rest               of               the               world               for               maintaining               a               staunch               forex               currency               exchange               policy               despite               the               detriment               its               own               export               industry               suffered.

The               natural               mechanisms               balancing               demand               for               imports               with               increased               prices               reducing               that               demand               are               not               present               when               a               currency               is               under               a               fixed               regime.

The               Chinese               government               therefore               needs               to               be               much               attuned               to               the               subtleties               of               the               domestic               economy.


               Today               however,               with               online               forex               trading               so               popular,               the               world               appears               to               have               forgotten               this               consistency.

Almost               every               developed               economy               demands               that               China               revalue               its               currency               upward               or               allow               forex               trading               market               forces               to               dictate               the               value               of               the               Yuan.
               The               United               States               is               China's               largest               trading               partner               and               claims               that               China's               exports               remain               artificially               cheap               due               to               the               low               value               at               which               the               Yuan               remains               fixed.

China               however,               has               not               been               found               to               be               unresponsive,               and               over               the               past               6               years               had               revalued               the               Yuan               almost               18%               from               US$8.19               in               2005               to               US$6.50               in               2011.

An               important               step               toward               a               float               of               a               currency,               in               2010               China               declared               that               it               would               no               longer               be               fixed               to               the               $US               dollar               but               will               be               linked               to               a               basket               of               currencies.

This               basket               is               not               revealed               unfortunately,               but               common               sense               dictates               that               it               will               be               comprised               of               the               major               world               currencies               that               China               trades               with.


               The               fact               remains               however,               that               regardless               of               the               speculation               by               FX               brokers               and               the               rest               of               the               world               that               China               will               float               the               Yuan               on               the               online               forex               market,               Chinese               authorities               have               only               ever               maintained               that               they               valued               consistency               and               measured               steps               in               foreign               currency               policy               over               the               drastic               reform               of               a               sudden               float.
               As               with               the               Asian               Crisis,               the               experts               at               www.investtechfx.com               have               seen               a               large               number               of               speculative               currency               attacks               on               forex               currency               exchanges               and               with               online               forex               brokers               usually               attach               themselves               to               currencies               with               a               fixed               regime.

Particularly               when               inflation               appears               to               be               out               of               immediate               control,               or               if               the               fixed               currency               regime               cannot               be               sustained               by               the               government               central               bank               intervention,               speculators               will               sell               heavily               in               order               to               drain               that               government               of               all               its               foreign               reserves.

China               has               managed               to               ward               off               the               attacks               of               speculators               simply               due               to               the               fact               that               its               population               has               exploded               in               the               last               decade               to               absorb               the               huge               amounts               of               capital               that               are               flowing               into               the               country.

Additionally,               China's               foreign               currency               reserves               are               maintained               due               to               the               FX               trading               and               foreign               investment               that               she               allows               through               capital               management               programs.
               China               is               still               a               very               conservative               nation               with               a               political               ideology               opposed               by               most               of               the               developed               world.

Still,               she               remains               an               example               of               tolerance               as               time               and               time               again,               China               has               been               willing               to               recognize               her               role               in               the               global               economy,               negotiate               with               other               countries               of               contrary               politics,               and               collaborate               on               systemic               programs               such               as               the               stimulus               of               the               global               economies               during               the               Global               Financial               Crisis.

Despite               the               global               clamor,               China               may               not               in               fact               float               the               Yuan               and               allow               FX               trading               in               the               near               future.

She               may               instead               sail               the               steady               course               she               has               for               so               long               now.

Her               duty               to               her               people               certainly               doesn't               turn               on               floating               the               currency               as               the               present               arrangement               appears               to               be               most               agreeable               to               China's               healthy               economy.









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