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Why China’s government wants to keep its currency low?


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One Response to “Why China’s government wants to keep its currency low?”

  1. By keeping its currency low it reduces the cost of purchasing that currency from abroad, this makes its goods cheaper in foreign countries as its goods are priced in its own currency.

    This leads to increasing exports which drives up production and hence job creation, this helps reduce unemployment and generally increases the standard of living for its population. The improving position of its people economically is one of the major factors that reduce calls for democratization and so allow the government to maintain its authority.

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