My one brand, two systems cup of java has me thinking about the manipulation of national currencies in an international economic system. In particular, I reviewed what I knew and didn’t know about the rise and fall of 外汇卷 (foreign exchange certificate) as opposed to 人民币 (the People’s currency). FEC circulated from the early 60s through January 1, 1995, when the government began phasing it out, completing the process on Dec 31, 1996, just in time for Hong Kong’s Return.

Now, China’s FEC is interesting because before 1980, Chinese citizens were not allowed to hold either FEC or foreign currency, while after 1980, they were. Continue reading →