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To: Snowshoe who wrote (34977)	6/13/2003 9:30:36 PM
From: TobagoJack	Respond to of 74559

<<My question is: How can they manage to keep it pegged? Why don't they just let if float? Up or down?>> The Yuan is not freely convertible to other currencies by law, though not really by fact.

To: Snowshoe who wrote (34977)	6/14/2003 1:13:07 AM
From: smolejv@gmx.net	Read Replies (2) \| Respond to of 74559

Jay answered >>The Yuan is not freely convertible to other currencies by law, though not really by fact. << which for me just rephrases your question. Let me climb out on the limb: The peg essentially makes the Chinese economy a close partner if not a member of American market (of products, capital, manpower, jobs...). Seen from this perspective a) China is 10x the size of factories in Tihuana & the rest of Mexico and S.America ("who-needs-naphta"-reason) b) there's Pacific and not some 10ft fence between the two countries ("who-needs-Rio-Grande"-reason) c) The growth of Chinese economy can not be absorbed by Chinese economy alone, so J6P and Sir Alan are helping along ("who-needs-Nihon"-reason) I am sure the thread could find some more letters to provide; RegZ dj