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Economic Commentary

The Chinese Renminbi: What’s Real, What’s Not

China’s recent devaluation and liberalization of its exchange-rate policies will, at best, have only a temporary impact on its trade competitiveness with the United States. The type of exchange-rate regime that a country adopts matters little for its long-term international competitiveness. In addition, the recent focus on China’s exchange rate diverts attention from the real problem: China’s command economy.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Higgins, Patrick, and Owen F. Humpage. 2005. “The Chinese Renminbi: What’s Real, What’s Not.” Federal Reserve Bank of Cleveland, Economic Commentary 8/15/2005.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International