Two unusual events are happening in China at the same time! On one side, bank deposit interest rates have fallen below 1%, and the returns from putting money in the bank are getting lower and lower. On the other side, the Chinese yuan has risen to below 6.8 against the US dollar, reaching a nearly three-year high. According to basic economic principles, the lower the interest rate in a country, the less demand there should be for its currency, and the exchange rate should be moving downward.