The Eurozone The Eurozone was hit severely by 2008 to 2009 global financial crisis. Consequently, various nations incurred incredible threats to the stability of their financial systems. This situation was witnessed in countries such as Portugal, Italy, Ireland, Greece, and Spain (PIIGS). Until today, these countries have sustained serious financial debts that threaten them to be declared bankrupt as one of the consequences of failure to repay their loans (Roubini & Mihm, 2016). In the effort to get the nations out of trouble, the International Monetary Fund, the European Central Bank (ECB), and other member states to the Eurozone, which also adopted a common currency (Euro), considered bailing-out PIIGS. By so doing, other member states would shield themselves from troubles associated with trading within the same regional blocks with nations that had large debts. Bailing-out can work effectively only if all Eurozone member nations consider adopting structural and monetary policies that can help destabilized member nations to regain stability. After receiving the loan, one of the monetary policies that would help PIIGS to stabilize is the deflation of their currency, in this case, the Euro. The policy would make their products cheaper, hence becoming more competitive in the international markets. Through economies of scale, the nations would grow their productivity. This policy requires approval by all member nations. However, the policy cannot succeed (Roubini & Mihm, 2016). Already stable nations such as Germany, which will help in bailing out PIIGS, cannot consent to such policy, as it would lead to the weakening of the euro against the dollar. Therefore, bailing out of PIIGS without considering adjustments of monetary policies towards the euro would reduce the number of Euros available to the Eurozone for trading with other nations. Floating the Yuan to the US Dollar Considering the discussion, it is clear that China adopts an appropriate strategy that permits the variation of its currency against the Dollar to take advantage of international trade. Hence, the nation does not adopt the floating exchange rate policy. Indeed, the cornerstone of the economic propensity of China is based on exports. Lipman (201) reveals the absence of a specific known value of Yuan in Dollar terms, despite the general agreement that the currency is significantly undervalued. Depending on the variations of global trade, the People’s Bank of China (PBOC) sets an appropriate reference point of Yuan against the Dollar for the Dollar to fluctuate within a predetermined band. When Americans complain about the low pegging of the Yuan against the Dollar, China responds to the concerns. However, its moves are well calculated to ensure that any upward adjustment delivers more value to the nation. China has large reserves of treasuries in the US market. By recycling all Dollar surpluses through investments in the United States’ treasuries, the government of the US acquires the capacity to fund its budget arrears, including maintaining its bonds within low yields (Lipman, 2011). China is the largest holder of the United States’ treasuries. In 2013, the amount was in excess of 1.3 trillion. This situation introduces yet another challenge for the US