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Year of the Monkey Could Prove Economic Balancing Act for China

China is up against a tricky situation on the financial front in Year of the Monkey, facing the need to fight capital flight while also stopping a further slide of foreign currency reserves. The year began with a sharp reduction in its foreign currency reserves, an important bulwark of country’s economic strength. Foreign reserves fell $99.5 billion in January as the government sold vast amounts of dollar to buy Yuan (RMB) and keep it from falling further. The Yuan has reached a 5-year...

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