There are good reasons for the country to avoid pursuing depreciation and to manage currency's fluctuation against the dollar It has been common recently for some analysts and economists to advocate the depreciation of the renminbi, based on their understanding that the Chinese currency has been overvalued for a few years. In the belief that devaluation could stimulate exports and reduce the risks of deflation, some even suggested a drop of 10 to 20 percent. However, the central bank appears not to support this idea. The People's Bank of China has taken many measures to stabilize the value of the renminbi since Aug 13. Zhou Xiaochuan, its governor, has said China can maintain stability of...
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