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Exchange rate reform will affect trade, employment, farm products, and the overall economy. Companies and financial institutions all need time to adjust.

Under the floating exchange rate system, the initiative to take on speculators is in the hands of the central bank, while under the fixed exchange rate system, the initiative is actually in the hands of speculative capital.

Policy makers will observe the effects of the revaluation on the economy and the degree to which it is digested. This is an adjustment period.

Raising the lending rate is the first tightening of the controls.

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