The people's currency

As policymakers weigh how a possible yuan appreciation would affect the nation's importers and exporters, they have wisely turned to the use of stress tests that simulate what would happen if the exchange rate were to rise.

While many Chinese exporters, especially those that depend on labor, stress their vulnerability to any significant appreciation of the currency, the authorities should balance that with the benefits of a stronger yuan for Chinese importers.

More importantly, they should keep in mind that the yuan's exchange rate is not merely a trade issue. And any decision on revaluating the yuan must also account for its impact on the Chinese people.