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China’s Renminbi: What’s Real, What’s Not

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In 1995, China pegged its currency, the renminbi, to the U.S. dollar at about 8.28 yuan per dollar. The often-made accusation that this peg undervalued the renminbi in relation to the dollar has some justification: China has acquired an enormous amount of dollar reserves under the peg. Had the renminbi floated against the dollar, it surely would have appreciated.

Suggested citation: "China’s Renminbi: What’s Real, What’s Not," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-08, pp. 09, 08.01.2004.

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