China: To Float or Not to Float? (B): Timeline of Changes Relevant to the Chinese Renminbi

Case Solution

Laura Alfaro, Rafael Di Tella, Ingrid Vogel, Renee Kim, William Russell
Harvard Business School ()

On July 21, 2005, China revalued its decade-long quasi-fixed exchange rate from around 8.28 yuan to the US dollar by 2.1% to 8.11% while simultaneously introducing a foreign exchange rate system. more market-oriented change. Many analysts and economists were disappointed by what they thought was too small a change and called for more flexibility in the US dollar-yuan exchange rate. It includes a timeline of other changes relevant to the Chinese renminbi.

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