Loading ...Its all propaganda. The Yuan and dollar are 99% pegged. You can see in on the Kitco site. A link showing gold priced in Yuan and Dollars. They problem they may be having is…
If the dollar is the leader and goes way up, 80 to 100 like it did, the Yuan does the same thing, goes way up, drops prices. Or if its vice versa. If Yuan is the leader, getting the market respect and goes up it drags dollar higher, lower prices.
I think they may have originally pegged the dollar to the Yuan on purpose to protect (lock in) all the huge corporations that got tax incentives and an advantageous pegged exchange rate to avoid big losses after moving entire plants and industries over to China.
A 1% 2% or 3% devalue move in microscopic. Meaningless, structurally. I did some research one day on how much Yuans a worker needs to live, cross referenced it to dollars, took out a calculator and figured the Yuan is at least about 50%-75% UNDER valued. Dollars should be one dollar for three Yuan not one dollar for 6-7 Yuan.
See the peg for yourself. Click on “Chinese Yuan” L/S and 6 months and one year.
http://www.kitco.com/gold_currency/index.html?currency=cny&timePeriod=6m&flag=gold&otherChart=no