Economist: During the global rebalance of economy dynamics, the exchange rate of CNY has played an important role in the process. There is practical incentive from the Chinese government not to revalue the yuan as her export sector has been hit hard by the financial crisis, and if RMB is revalued upwards, the consequence could be disastrous. However, on the other hand, there are good reasons to revalue the Yuan as well. For example a revalued yuan will lower the cost of Chinese imports on the raw materials, and potentail curb the inflationary pressure on its domestic equity and property market. In addition, if China wants to make Yuan more internationally accepted, it is inevitable that China makes Yuan more freely traded and therefore revalued.