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Chinese Start To Lose Confidence In Their Currency Summary

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The article “Chinese Start to Lose Confidence in Their Currency” shows the economic situation in China is not good. The devaluation of the renminbi and the stock market declining is making more and more people worried about China’s economy. Many Chinese people are trying to move large amounts of money out of the country, because they think renminbi’s value will keep deceasing. China has never faced an economic disaster like this before. For many years, China’s annual economic growth rate was in double digits. However, the Chinese government is thinking of ways to solve this problem. The government restricts people from transferring renminbi into dollars. Because of this cash control, each person can only transfer $50,000 a year. Also the Chinese government is cutting interest rates, so that people will not save money and instead spend their money. At the same time, the Chinese government is purchasing a large amount of renminbi. The Chinese government has a firm faith that they will do whatever they can to conquer this challenge. …show more content…

From the title of the article, “Chinese Start to Lose Confidence in Their Currency”, there is a word “currency”, which shows the relationship with economy. Money is the most important part in the economic system. People use money to buy the products they want and earn money from their jobs. Also from the content of this article, it introduces the current situation of China’s currency, renminbi. The devaluation of renminbi causes more and more people to not want to conserve renminbi. Also the Chinese government restricts people from changing renminbi into other currency, in order to incentivize people to spend their money. Both the content and the title focus on Chinese currency, renminbi. As a result, this article is about the variable,

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