ECON 13 Chapter Notes - Chapter 8-10: Renminbi, Foreign Exchange Market
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ECON 13 Full Course Notes
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China expanded the daily trading range that its currency can fluctuate against the us dollar. Move in an important step towards allowing the yuan to eventually float freely. The people"s bank of china is the country"s central bank. The rmb would be allowed to rise or fall each day by 1% from the daily official rate. China unpegged its currency from the dollar in 2005. Rmb has gradually appreciated by just over 30% against the dollar. The central bank still has the ultimate say on whether the rmb appreciates or not. The central bank is an active participant int he foreign exchange market. China has accumulated the world"s largest foreign exchange reserves, . 2 trillion. Currency wars, a fight to be weaker (week 9) Half a dozen countries are actively trying to push down the value of their currencies.
