For Basket Currency Regime
Thesis Statement
Any country can choose on whether to or not to peg their respective currencies on another different currency. This decision is influenced by various factors. Pegging a currency against another currency is driven by some reasons and will have several benefits and disadvantages. The other alternative is the use of basket currency regime in the country. This has some costs, benefits and constrains which need to be considered . There are several currency regime blocks that will always influence these decisions.
In China, the Chinese Yuan was strictly pegged on the US dollar for a very long time. ...