From which year did China place an overvalued fixed exchange rate on its currency? - Search
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  2. 2005
    • According to 2 sources
    On July 21, 2005, after more than a decade of strictly pegging the renminbi to the U.S. dollar at an exchange rate of 8.28, the People’s Bank of China (PBOC 2005a) announced a revaluation of the currency and a reform of the exchange rate regime.
    It used to peg its currency to the U.S. dollar but since 2005 it has managed its currency against a basket of currencies with weightings determined by levels of trading with its foreign partners. The currency is not allowed to float more than 2% against a fixed level. This approach keeps the value of the yuan low compared to other countries.
     
  3. People also ask
    How did China change its exchange rate regime?On July 21, 2005, China announced a major reform to its exchange rate regime, from fixing the yuan rate with respect to the U.S. dollar to a more flexible arrangement. The PBC announced that China was “moving into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies.”
    How did the currency change during the Asian financial crisis?In terms of exchange rate changes, the exchange rate was USD1 = CNY8.7 at the time of exchange rate unification in 1994 and appreciated to USD1 = CNY8.28 after the Asian financial crisis in 1997, a cumulative appreciation of 5%. From 1997 to July 2005, CNY was actually pegged to USD alone and fluctuated within a narrow range.
    How did the devaluation affect China's exchange rate?The devaluation set the stage for a fixed exchange rate to serve as a nominal anchor for China over the following decade. The rate was established at around 8.3 RMB/US$.
    Why did China put a fixed exchange rate on its currency?From 1949 until the late 1970s, China placed an overvalued fixed exchange rate on its currency. The Chinese government did not want the country to depend on the outside world for imports. In an effort to boost its own industrialization, the fixed rate allowed them the opportunity to buy machinery from other countries at prices they could afford.
     
  4. Why Is the Chinese Yuan Pegged? - Investopedia

     
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  22. Currencies: Undervalued versus Overvalued | Rutgers Business …

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