Dodson Response--Chapter 8

In chapter 8, Dodson explains the importance of Chinese currency in the Chinese economy.  I understand that Chinese currency is a large necessity for other countries like America because the U.S. depends on China's cheap balances.  I wouldn't necessarily consider the value of the yuan a trend in China because they remained stagnant in their currency.  The yuan for China is an international marketplace where countries like America can purchase their goods from China at reasonable prices and use that advantage to increase the prices on goods in their own country.  Even though China is helping other countries, their value of yuan has somehow become devalued in their own growing economy.  On page 173, Dodson writes that, "In 2009, China signed currency-exchange agreements with Argentina, Indonesia, South Korea, Malaysia, Belarus, and Hong Kong."  Still, these initiatives to open up its financial market come nowhere solving China's greatest international finance conundrum: what to do with its stash of dollar-denominated savings held abroad?"  It's highly necessary to collaborate internationally on goods, but I don't think China realizes that they have to focus heavily on their own economy before they make sudden currency exchanges with other countries.  Their own products such as toys are not being bought by its own citizens because international development became, what it seems to be their primary interest.  Overall, the undervalued yuan is what keeps China's currency system going.  Maybe it would be of great worth if China worried about the value of the yuan for their country rather than worrying about the pressure that comes along with the exchange from America and European countries.