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the yuan, China Although the pegged exchange rate between the yuan and the dollar has has been reluctant to abandon the peg f
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Undervalued, Reduce Exports.

Yuan is a weak currency and pegged exchange rate between the Yuan and the dollar has Undervalued the Yuan, China has beenn reluctant to abandon the peg for fear that abondoning the peg would reduce exports because it will increase the value of yuan with respect to dollar and thus make Chinese exports expensive.

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