It isn't going to trade without restrictions. It will trade against an unnamed basket of currencies and will be allowed to float .3% in either direction in a given trading day. We'll see how much nerve the Chinese central bank has when they watch the yuan go up day after day for the next month.
The other thing this move could do is force a change in long-term interest rates, although recent reductions in the U.S. budget deficit mean that we don't have to sell as many T-bills abroad to float our spending habits. The rest of the year should be very interesting... >NEW YORK - A stunning development on the international front. After >much pressure and speculation, China has decided to drop its >decade-old policy of linking the value of its currency to the U.S. >dollar. Effective Friday, the yuan will no longer have a fixed rate >and instead will float in the marketplace, meaning it will trade >without restrictions. > >Man, I hope some you threw some dollars into yuan! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Find out how CFTicket can increase your company's customer support efficiency by 100% http://www.houseoffusion.com/banners/view.cfm?bannerid=49 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:165777 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
