This summer, China announced it would introduce more flexibility into its exchange rate, and at the same time make it remain "basi- cally stable". "l-his move has drawn great attention from both home and abroad since China's currency reform has always been a hot topic for economists, politicians, export businessmen, media and of course the pub- lic; these forces have combined to make it seem like a big issue that everyone should take a serious look at and know some facts about.