Yuan

[jiesen]

http://biz.yahoo.com/ap/061029/china_currency.html?.v=4

Am I reading this correctly?

China allows the dollar-yuan rate to move no more than 0.3 percent above or below the daily parity rate each day, with other currency pairs -- the yuan's values against the Japanese yen, Hong Kong dollar, euro and British pound -- allowed to move within 3 percent of the parity rate each day.

So if the dollar takes a >3% dive against those other currencies in one day, then China will flood the market by selling dollars at a cut-rate price in yuan? Uh oh...

[diogenes]

Pegged currencies can be very interesting in that way.