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China grapples with contradictions over currency

Some say Beijing will need to devalue the yuan, but the disruption will negatively affect currency's status

China has been diving into its foreign exchange reserves - already the world's largest - to buy massive amounts of yuan.


CHINA is struggling to reconcile its push for economic reforms and a freely traded currency with curbing massive outflows of capital sparked by worries over its slowing economy - and a lack of communication is fuelling fear.

The thorny problem represents the so-called "