In 1994, the Chinese government considered a policy requiring all firms to deposit foreign currencies with commercial banks. In turn, these banks were required to remit these funds (once above a certain level) to the People's Republic Bank of China in exchange for the Chinese Yuan. What could the implications on the firms, banks, and national economy of such a policy be?

Note: Your answer should be 3-5 paragraphs. Where any outside resources as used, they should be properly cited.