Sunday, December 4, 2011

How is China controlling the price of the Renminbi (RMB) ? What are the various instruments it employ?

The article in the source indicates how the RMB is controlled. It is contrasted with the control by the Singapore Monetary authority.


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The implication is that it is still well below it's purchasing power parity value (about 2 to 1 with US dollar). It is exchanging at 7 to 1 right now.

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