Mohamed Ariff: The Chinese economy had made a substantial increase in GDP size from US$ 456 billion in 1989 to US$ 12,230 billion in 2005. Over a span of 16 years prior to 2005, the RMB was accepted at 5.8 to one US$ ever since the currency was devalued by 30 percent in 1994. A remarkable policy shift took place in July 2005, when China adopted crawling peg currency management. Simultaneously, it revalued the currency from RMB 8.28 to 8.11 to one US$. In the years since these twin changes in 2005, the currency has appreciated via crawling peg management to the January 2018 rate of RMB 6.50 RMB to one US$. On the back of these desirable changes in the value of its currency over the post-2005 period, China put a new policy in place to settle international payments of selected trading partners to engage in financial transaction with...
Skip Nav Destination
October 01 2018
Comments by Mohamed Ariff, on RMB Bloc in East Asia: Too Early to Talk About It?
Online Issn: 1536-0083
Print Issn: 1535-3516
© 2018 by the Asian Economic Panel and the Massachusetts Institute of Technology
Massachusetts Institute of Technology
Asian Economic Papers (2018) 17 (3): 49–50.
- Share Icon Share
- Views Icon Views
- Search Site
Comments by Mohamed Ariff, on RMB Bloc in East Asia: Too Early to Talk About It?. Asian Economic Papers 2018; 17 (3): 49–50. doi: https://doi.org/10.1162/asep_a_00629
Download citation file: