1. ECONOMY
 What is Yuan & why it place an important role globally?
 Yuan is a Chinese currency; China has grown so quickly and
surprisingly due to its super cheap exports.
 China has the world's largest money printing operation but
still fails to meet demand for Yuan.

2. DEMAND AND SUPPLY
 Buy Foreign currency with Yuan when Demand
exceeds supply.
 Sell foreign currency for Yuan when supply
exceeds demand.

3. DEVALUATION
 Devaluation is lowering of the value of a country's currency within a
fixed exchange rate system and keeping it at fixed rates irrespective of
the fluctuations in the global currency market.
The lowering of a currency helps the nation export more vis-à-vis other
countries. For example, suppose one dollar is equal to Rs 100. And if
the rupee was devalued by 10 percent, the equation becomes USD 1 =
Rs 110. This means Rs 10 extra for exporters for every single dollar they
earn in the global market.
 What could be the Impact?
 China is US’ biggest lender. It holds USD 889 billion worth of US
government bonds - creating a potentially potent weapon. If China
decides to dump the holdings, US dollar will collapse, plunging the
world’s largest economy into deep chaos.

4. DEMAND-SUPPLY CURVE
Series 1
6.7
6.66284
6.65
6.60482
6.6
6.54679
6.55
6.5 6.48877
Series 1
6.45 6.43075
6.4
6.35
6.3
Mar/11 Apr/11 May/11 Jun/11 Jul/11